Higher Education Policy

, Volume 16, Issue 3, pp 313–332 | Cite as

Market Model of Financing Higher Education in Sub-Saharan Africa: Examples from Kenya

  • Moses O Oketch


This paper examines some of the rationales for financial diversification and partial privatization of state universities in Kenya and the different manifestations of market-driven approaches to university education. It highlights the financial diversification activities at Kenya's state universities and raises key questions: Will the market model through financial diversification be able to creatively address the challenges of increased demand for higher education while ensuring that quality is maintained in Kenya's higher education 2 years form? Or will the market model lead to increased enrollment, providing quantity-driven education full of credentials but little academic value in terms of quality? Will students graduate with degrees without learning? Or will students graduate with both? How does the market model define students — are they clients, customers, or students?


education finance economics of education kenya marketization of education university education 


  1. Association of African Universities (1997) ‘Revitalizing Universities in Africa: strategy and guidelines’, Washington DC: The World Bank.Google Scholar
  2. Banya, K. (2001) ‘Are private universities the solution to the higher education crisis in sub-Saharan Africa?’ Higher Education Policy 14 (2): 161–174.CrossRefGoogle Scholar
  3. Barr, N. (1998) ‘Market forces and education’, Washington DC: The World Bank.Google Scholar
  4. Bowman, M.J. (1962) ‘Human Capital: Concepts and Measures’, in S.J. Mushkin (ed.) Economics of Higher Education, Washington, DC: US Government Printing Office.Google Scholar
  5. Coleman, J.S. and Court, D. (1993) University Development in Third World, Oxford: Pergamon.Google Scholar
  6. Court, D. (1990) ‘The development ideal in higher education: the case of Kenya and Tanzania’, Higher Education 9: 657–680.CrossRefGoogle Scholar
  7. Court, D. (1999) ‘Financing higher education in Africa: Makerere, the quiet revolution’, Washington DC: The World Bank.Google Scholar
  8. Daily Nation (DN) (2002, April) ‘Time ripe to review varsity intake’.Google Scholar
  9. East African Standard (EAS) (2002) ‘Shattering the pipe dream’.Google Scholar
  10. Eisemon, T. (1991) ‘Private initiatives and traditions of state control in higher education’, World Bank, Population and Human Resource Development (mimeo).Google Scholar
  11. Eisemon, T. (1992) ‘Private initiatives in higher education in Kenya’, Higher Education 24 (2): 157–175.CrossRefGoogle Scholar
  12. Eisemon, T. and Salmi, J. (1993) ‘African Universities and the State: prospects for reform in Senegal and Uganda’, Higher Education 25: 151–168.CrossRefGoogle Scholar
  13. Haddad, W. (1990) ‘Education for all. The role of international Aid’, Prospect 20 (4): 525–536.CrossRefGoogle Scholar
  14. Harbison, F. and Myers, C. (1996) Education, Manpower and Economic Growth, New York: McGraw-Hill, Inc.Google Scholar
  15. Heyneman, S.P. (1999) ‘Education in sub-Saharan Africa: serious problems, significant opportunities’, Report Presented at the African Summit Conference, Houston, Texas, April 24.Google Scholar
  16. Heyneman, S.P. (2000) ‘A renewed sense of purpose of schooling: education and social cohesion in Africa, Latin America, Asia & Europe’, Prospect 30 (2): 145–166.CrossRefGoogle Scholar
  17. Hinchcliffe, K. (1987) Higher Education in sub-Saharan Africa, London: Croom Helm.Google Scholar
  18. Johnston, D.B., Alka, Arora and William, Experton (1998) ‘The financing and management of higher education: a status report on World reforms’, Washington DC.: The World Bank.Google Scholar
  19. Nafukho, M.F. and Verman, S. (2001) ‘A comparison of the efficiency and equity implications of university loan programs in the United States and in Kenya’, Journal of Third World Studies 18 (2): 187–207.Google Scholar
  20. Ogada, T.P. (2000) ‘Need for establishing innovation and invention in support structures or services in universities in developing countries’, Paper Presented at the Intellectual Property Organization Regional Seminar, Tanzania pp, 1–10.Google Scholar
  21. Oketch, M.O. (2000) ‘Costing and financing higher education for development in sub-Saharan Africa: Kenya's Case’, International Educational Journal ej 3.Google Scholar
  22. Oketch, M.O. and Amutabi, M. (2002) ‘Privatization of higher education in Kenya: prospects and problems’, Paper Presented at the Annual Centre for African Studies Conference University of Illinois at Urbana-Champaign/CODESRIA, Dakar, Senegal.Google Scholar
  23. Republic of Kenya (1997 and 1998) National Development Plans, Nairobi: Government Printer.Google Scholar
  24. Republic of Kenya (1995) The higher education loans board act 1995 in The Kenya Gazette Supplements Acts 1995 No. 47 (Act No. 4), Nairobi. Government Printer.Google Scholar
  25. Rodrigues, A.J. and Wandiga, S.O. (1997) ‘Cost-sharing in public universities: a Kenyan case study’, Higher Education Policy 10 (1): 55–80.CrossRefGoogle Scholar
  26. Saint, W. (1992) Universities in Africa: Strategies for Stability and Revitalization, Washington, DC: The World Bank.Google Scholar
  27. Schults, T.W. (1960) ‘Capital formation by education’, Journal of Political Economy 68: 571–584.CrossRefGoogle Scholar
  28. Schultz, T.W. (1961) ‘Investment in human capital’, American Economic Review 5: 1–7.Google Scholar
  29. Schultz, T.W. (1962) ‘Rise in the Capital Stock Represented by Education in the United States, 1950–57’, in S.J. Mushkin (ed.) Economics of Higher Education, Washington DC: US Government Printing Office.Google Scholar
  30. Schultz, T.W. (1963) The Economic Value of Education, New York: Columbia University Press.Google Scholar
  31. UNDP (1996) Human Development Report, New York: Oxford University Press.Google Scholar
  32. Williams, G. (1996) ‘The many faces of privatization’, Higher Education Management 8 (3).Google Scholar
  33. Woodhall, M. (2001) ‘Financing higher education. The potential contribution of fees and student loans. International Higher Education’, Center for International Higher Education, Boston College.Google Scholar
  34. World Bank (1990) Adjustment lending policies for sustainable growth, Washington, DC: The World Bank.Google Scholar
  35. World Bank (1995) Priorities and strategies for education: a review, Washington, DC: The World Bank.Google Scholar
  36. World Bank (2000) ‘Higher education in developing countries: peril and promise’, Washington DC: The World Bank.Google Scholar

Copyright information

© International Association of Universities 2003

Authors and Affiliations

  • Moses O Oketch
    • 1
  1. 1.Department of LeadershipPolicy, and Organizations, Peabody College, Box 514, Vanderbilt UniversityNashvilleUSA

Personalised recommendations