Special Paper No. 07 of 2006 on Private Sector Investment in Education and Training: A Case of Tertiary Education in Kenya

Abstract

This paper assesses the current status of private sector participation in education investment and makes policy recommendations. A cross-sectional research design was used in this study. An in-depth descriptive analysis of private sector investment in technical and university education in Kenya was carried out. A sample of 137 private tertiary education institutions was surveyed in 2003/04. Key informants who responded to the questionnaire included principals and senior managers of the sampled institutions. More than three quarters of private institutions of higher learning and less than a quarter of commercial colleges are affiliated to other institutions either locally or abroad. However majority of private institutions were single-campus institutions with a considerable number starting their operations after 1990. Private investment in tertiary institutions has been increasing rapidly since 1990. In choosing the location, investors considered factors such as the catchment area, accessibility, availability of facilities and infrastructure. Despite investment in education being a long-term investment, majority of private investors did not own the land on which business premises were located. This was mainly due to high cost of land in areas considered to be favourable for locating a private institution, and unsupportive policy and legal framework. Most institutions offered soft courses that were female-dominated, as opposed to technical and engineering oriented courses. Foreign student enrolment was very low, though the country is a net importer of education with an estimated Ksh 25 billion being spent annually by Kenyan students abroad. Sole proprietorship, partnerships and religious organizations were the main investors in private education...