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  3. Vol. 20 No. 2 (2022): Journal of Higher Education in Africa: Special Issue on Conceptualising and Researching the Public Good Role of Universities in Africa
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Vol. 20 No. 2 (2022): Journal of Higher Education in Africa: Special Issue on Conceptualising and Researching the Public Good Role of Universities in Africa

Issue Published : November 28, 2022

4 - Higher Education Finance as a Public Good in Kenya

https://doi.org/10.57054/jhea.v20i2.2726
Moses Oketch

Journal of Higher Education in Africa, Vol. 20 No. 2 (2022): Journal of Higher Education in Africa: Special Issue on Conceptualising and Researching the Public Good Role of Universities in Africa
Article Published : November 28, 2022

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Abstract

This article discusses the transformation of the higher education financing model and how this relates to the concept of higher education as a public good in the context of Kenya. Following independence in 1963, the new Kenya government – like most countries in sub-Saharan Africa that attained independence in this period – considered the establishment of a university to be one of the symbols of a republic and of national advancement. The government valued the public role of university education during this early phase of Kenya as a sovereign nation, even when access remained highly restricted. But, equally, the private benefits of being a university graduate were evident to the Kenyan citizenry. For two decades, Kenya had only one public university – the University of Nairobi – but after 1984 the state rapidly expanded higher education, partly in response to demand. Several universities have since been established, both public and private. Concurrently, the government has pursued a cost-sharing financing model to support this rapid expansion, which is contrary to the notion of higher education as a public good to be provided free of charge. This article examines this transformation of the financing model together with higher education as a publi good and concludes that each has influenced the other in Kenya’s context.

Keywords

Kenya higher education finance public good human capital equity student loans

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Oketch, M. (2022). 4 - Higher Education Finance as a Public Good in Kenya. Journal of Higher Education in Africa, 20(2), 67–87. https://doi.org/10.57054/jhea.v20i2.2726
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References
  1. Amutabi, M. N., 2002, Crisis and student protest in Universities in Kenya: Examining the role of students in national leadership and the democratization process, African Studies Review, Vol. 45, No. 2, pp. 157–78.
  2. Appiah, E. N., and McMahon, W. W., 2002, The social outcomes of education and feedback on growth in Africa, Journal of Development Studies, Vol. 38, pp. 27–68.
  3. Barr, N., 2004, Higher education funding, Oxford Review of Economic Policy, Vol. 2, No. 2, pp. 264–283.
  4. Barr, N., Chapman, B., Deaden, L., and Dynarski, S., 2019, The US college loans system: Lessons from Australia and England, Economics of Education Review, Vol. 71, pp. 32–48.
  5. Becker, G. S., 1993, Human Capital: A theoretical and empirical analysis of education with special reference to education, 3rd ed., Chicago: University of Chicago Press.
  6. Bennell, P., 1996, Using and abusing rates of return: A critique of the World Bank’s 1995 education sector review, International Journal of Educational Development, Vol. 16, No. 3, pp. 235–248.
  7. Breton, T. R., 2008, Schooling and national income: how large are the externalities? Education Economics, Vol. 18, No. 1, pp. 67–92.
  8. Commission for University Education, 2019, University Statistics 2017–2018 report, Nairobi: Commission for University Education, https://www.cue.or.ke/index.php?option=com_phocadownload&view=category&id=18:universities-da-ta-0-3&Itemid=187# accessed on 10/1/2022.
  9. Goodman, A., and Kaplan, G., 2003, ‘Study now, pay later or HE for free’? An as- sessment of alternative proposals for higher education finance, IFS commentary, No. 94, London: Institute for Fiscal Studies.
  10. Government of Kenya, 2008, Vision 2030, https://vision2030.go.ke, accessed 6April 2021.
  11. Gudo, C., 2014, Financing higher education in Kenya: Public-private partnership approach, International Journal of Educational Policy Research and Review, Vol. 1, No. 1, pp. 001–005.
  12. Holcombe, R. G., 2000, Public goods theory and public policy, The Journal of Value Inquiry, Vol. 34, pp. 273–286.
  13. Johnstone, D. B., 2003, Higher education finance and accessibility: Tuition fees and student loans in sub-Saharan Africa, https://www.researchgate.net/publication/252580428_Higher_Education_Finance_and_Accessibility_Tuition_Fees_and_Student_Loans_in_Sub_Saharan_Africa.
  14. Keller, K. R. I., 2006, Investment in primary, secondary, and higher education and the effects on economic growth, Contemporary Economic Policy, Vol. 24, No. 1, pp. 18–34.
  15. Kimenyi, M. S., Mwamby G. M. and Manda, D. K., 2006, Human capital externalities and private returns to education in Kenya, Eastern Economic Journal, Vol. 32, No. 3.
  16. Lucas, R. E., 2008, Ideas and growth, NBER working paper 14133, Cambridge, MA: National Bureau of Economic Research.
  17. Marginson, S., 2011, Higher education and public good, Higher Education Quarterly, Vol. 65, No. 4, pp. 411–433
  18. McMahon, W. W., 1988, Potential resource recovery in higher education in developing countries and the parents’ expected contribution, Economics of Education Review Vol. 7, No. 1, pp. 135–152.
  19. McMahon, W. W., 2009, Higher education. Greater Good, Baltimore, MA: Johns Hopkins University Press.
  20. McMahon, W. W., 2018, The total return to higher education: Is there underinvest- ment for economic growth and development? The Quarterly Review of Economics and Finance, Vol. 70, pp. 90–111.
  21. McMahon, W. W. and Oketch, M., 2010, Bachelor’s and Short Degrees in the UK and US: New Social Rates of Return and Non-Market Effects on Development, LLAKES Research Paper 12, London, UK: Institute of Education, University of London, http://www.llakes.org/wp-content/uploads/2010/08/McMahonOketch-Complete.pdf.
  22. McMahon, W. W. and Oketch, M., 2013, Education’s effects on individual life chances and development: An overview, British Journal of Educational Studies, Vol. 61, No 1, 79–107.
  23. Odhiambo, O. G., 2011, Higher education quality in Kenya: a critical reflection of key challenges, Quality in Higher Education, Vol. 17, No. 3, pp. 299–315.
  24. Oketch, M. O., 2003, The growth of private university education in Kenya: The promise and challenge, Peabody Journal of Education, Vol. 78, No. 2, pp. 18–40. Oketch, M., 2016, Financing higher education in sub-Saharan Africa: some reflec- tions and implications for sustainable development, Higher Education, Vol. 72, pp. 525–539.
  25. Oketch, M., 2021, The social benefits of widening participation in higher education in Sub-Saharan Africa, Journal of Education Finance, Vol. 46, No. 2, pp. 456–476.
  26. Oketch, M., McCowan, T. and Schendel, R., 2014, The impact of tertiary education on development: A rigorous literature review, London, UK: DFID.
  27. Otieno, W., 2004, ‘Student loans in Kenya: past experiences, current hurdles and opportunities for the future’, JHEA/RESA, Vol. 2, No. 2, pp. 75-99
  28. Owino, A., 2019, Universities in Kenya: List of public and private universities, https://www.kenyans.co.ke, accessed 7 April 2021."
  29. Psacharopoulos, G., 1994, Returns to investment in education: A global update, World Development, Vol. 22, No. 9, pp. 1325–1343.
  30. Psacharopoulos, G. and Patrinos, H., 2004, Returns to investment in education: a further update, Education Economics, Vol. 12, No. 2, pp. 111–134
  31. Psacharopoulos, G. and Woodhall, M., 1985, Education for Development: An analysis of investment choices, New York: Oxford University Press.
  32. Samuelson, P. A., 1954, The pure theory of public expenditure, Review of Economics and Statistics, Vol. 36, No. 4, pp. 387–389.
  33. Sandy, B., Jennifer, M. and Kathleen, P., 2010, Education pays, 2010: The benefits of higher education for individuals and society, Trends in Higher Education Series. College Board Advocacy and Policy Center, https://eric.ed.gov, accessed 7 April 2021.
  34. Schultz, T. W., 1961, Education and economic growth, in Henry, N. B., ed., Social Forces Influencing American Education, Chicago: University of Chicago Press, pp. 46–88.
  35. Schultz, T. W., 1963, The Economic Value of Education, New York: Columbia Uni- versity Press.
  36. Stiglitz, J., 1999, Knowledge as a global public good, in Kaul, I., Grunberg, I. and Stern, M. eds, Global Public Goods: International Cooperation in the 21st Century, New York: Oxford University Press, pp. 308–325.
  37. Tilak, J. B. G., 2009, Higher education: a public good or a commodity for trade? Prospects, Vol. 38, pp. 449–466.
  38. Weisbrod, B. A., 1988, The non-profit economy, Cambridge, MA: Harvard University Press.
  39. World Bank, 1988, Education in Sub-Saharan Africa: Policies for adjustment, revi- talization, and expansion, Washington DC: International Bank of Development and Reconstruction.
  40. World Bank, 1995, Priorities and strategies for education. A World Bank Review, Washington DC: International Bank of Development and Reconstruction.
  41. World Bank, 2009, Accelerating Catch-up: Tertiary Education for Growth in Sub-Saharan Africa. Directions in Development; human development,
  42. Washington DC: World Bank, https://openknowledge.worldbank.org/handle/10986/2589
  43. World Bank, 2019, Improving education performance in Kenya: A policy report, Report No. AUS0001105, Washington DC: International Bank of Development and Reconstruction.
  44. Zemsky, R., 2003, Have we lost the ‘Public’ in higher education? Chronicle of Higher Education: The Chronical Review, Vol. 49, No. 38, B7.
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References


Amutabi, M. N., 2002, Crisis and student protest in Universities in Kenya: Examining the role of students in national leadership and the democratization process, African Studies Review, Vol. 45, No. 2, pp. 157–78.

Appiah, E. N., and McMahon, W. W., 2002, The social outcomes of education and feedback on growth in Africa, Journal of Development Studies, Vol. 38, pp. 27–68.

Barr, N., 2004, Higher education funding, Oxford Review of Economic Policy, Vol. 2, No. 2, pp. 264–283.

Barr, N., Chapman, B., Deaden, L., and Dynarski, S., 2019, The US college loans system: Lessons from Australia and England, Economics of Education Review, Vol. 71, pp. 32–48.

Becker, G. S., 1993, Human Capital: A theoretical and empirical analysis of education with special reference to education, 3rd ed., Chicago: University of Chicago Press.

Bennell, P., 1996, Using and abusing rates of return: A critique of the World Bank’s 1995 education sector review, International Journal of Educational Development, Vol. 16, No. 3, pp. 235–248.

Breton, T. R., 2008, Schooling and national income: how large are the externalities? Education Economics, Vol. 18, No. 1, pp. 67–92.

Commission for University Education, 2019, University Statistics 2017–2018 report, Nairobi: Commission for University Education, https://www.cue.or.ke/index.php?option=com_phocadownload&view=category&id=18:universities-da-ta-0-3&Itemid=187# accessed on 10/1/2022.

Goodman, A., and Kaplan, G., 2003, ‘Study now, pay later or HE for free’? An as- sessment of alternative proposals for higher education finance, IFS commentary, No. 94, London: Institute for Fiscal Studies.

Government of Kenya, 2008, Vision 2030, https://vision2030.go.ke, accessed 6April 2021.

Gudo, C., 2014, Financing higher education in Kenya: Public-private partnership approach, International Journal of Educational Policy Research and Review, Vol. 1, No. 1, pp. 001–005.

Holcombe, R. G., 2000, Public goods theory and public policy, The Journal of Value Inquiry, Vol. 34, pp. 273–286.

Johnstone, D. B., 2003, Higher education finance and accessibility: Tuition fees and student loans in sub-Saharan Africa, https://www.researchgate.net/publication/252580428_Higher_Education_Finance_and_Accessibility_Tuition_Fees_and_Student_Loans_in_Sub_Saharan_Africa.

Keller, K. R. I., 2006, Investment in primary, secondary, and higher education and the effects on economic growth, Contemporary Economic Policy, Vol. 24, No. 1, pp. 18–34.

Kimenyi, M. S., Mwamby G. M. and Manda, D. K., 2006, Human capital externalities and private returns to education in Kenya, Eastern Economic Journal, Vol. 32, No. 3.

Lucas, R. E., 2008, Ideas and growth, NBER working paper 14133, Cambridge, MA: National Bureau of Economic Research.

Marginson, S., 2011, Higher education and public good, Higher Education Quarterly, Vol. 65, No. 4, pp. 411–433

McMahon, W. W., 1988, Potential resource recovery in higher education in developing countries and the parents’ expected contribution, Economics of Education Review Vol. 7, No. 1, pp. 135–152.

McMahon, W. W., 2009, Higher education. Greater Good, Baltimore, MA: Johns Hopkins University Press.

McMahon, W. W., 2018, The total return to higher education: Is there underinvest- ment for economic growth and development? The Quarterly Review of Economics and Finance, Vol. 70, pp. 90–111.

McMahon, W. W. and Oketch, M., 2010, Bachelor’s and Short Degrees in the UK and US: New Social Rates of Return and Non-Market Effects on Development, LLAKES Research Paper 12, London, UK: Institute of Education, University of London, http://www.llakes.org/wp-content/uploads/2010/08/McMahonOketch-Complete.pdf.

McMahon, W. W. and Oketch, M., 2013, Education’s effects on individual life chances and development: An overview, British Journal of Educational Studies, Vol. 61, No 1, 79–107.

Odhiambo, O. G., 2011, Higher education quality in Kenya: a critical reflection of key challenges, Quality in Higher Education, Vol. 17, No. 3, pp. 299–315.

Oketch, M. O., 2003, The growth of private university education in Kenya: The promise and challenge, Peabody Journal of Education, Vol. 78, No. 2, pp. 18–40. Oketch, M., 2016, Financing higher education in sub-Saharan Africa: some reflec- tions and implications for sustainable development, Higher Education, Vol. 72, pp. 525–539.

Oketch, M., 2021, The social benefits of widening participation in higher education in Sub-Saharan Africa, Journal of Education Finance, Vol. 46, No. 2, pp. 456–476.

Oketch, M., McCowan, T. and Schendel, R., 2014, The impact of tertiary education on development: A rigorous literature review, London, UK: DFID.

Otieno, W., 2004, ‘Student loans in Kenya: past experiences, current hurdles and opportunities for the future’, JHEA/RESA, Vol. 2, No. 2, pp. 75-99

Owino, A., 2019, Universities in Kenya: List of public and private universities, https://www.kenyans.co.ke, accessed 7 April 2021."

Psacharopoulos, G., 1994, Returns to investment in education: A global update, World Development, Vol. 22, No. 9, pp. 1325–1343.

Psacharopoulos, G. and Patrinos, H., 2004, Returns to investment in education: a further update, Education Economics, Vol. 12, No. 2, pp. 111–134

Psacharopoulos, G. and Woodhall, M., 1985, Education for Development: An analysis of investment choices, New York: Oxford University Press.

Samuelson, P. A., 1954, The pure theory of public expenditure, Review of Economics and Statistics, Vol. 36, No. 4, pp. 387–389.

Sandy, B., Jennifer, M. and Kathleen, P., 2010, Education pays, 2010: The benefits of higher education for individuals and society, Trends in Higher Education Series. College Board Advocacy and Policy Center, https://eric.ed.gov, accessed 7 April 2021.

Schultz, T. W., 1961, Education and economic growth, in Henry, N. B., ed., Social Forces Influencing American Education, Chicago: University of Chicago Press, pp. 46–88.

Schultz, T. W., 1963, The Economic Value of Education, New York: Columbia Uni- versity Press.

Stiglitz, J., 1999, Knowledge as a global public good, in Kaul, I., Grunberg, I. and Stern, M. eds, Global Public Goods: International Cooperation in the 21st Century, New York: Oxford University Press, pp. 308–325.

Tilak, J. B. G., 2009, Higher education: a public good or a commodity for trade? Prospects, Vol. 38, pp. 449–466.

Weisbrod, B. A., 1988, The non-profit economy, Cambridge, MA: Harvard University Press.

World Bank, 1988, Education in Sub-Saharan Africa: Policies for adjustment, revi- talization, and expansion, Washington DC: International Bank of Development and Reconstruction.

World Bank, 1995, Priorities and strategies for education. A World Bank Review, Washington DC: International Bank of Development and Reconstruction.

World Bank, 2009, Accelerating Catch-up: Tertiary Education for Growth in Sub-Saharan Africa. Directions in Development; human development,

Washington DC: World Bank, https://openknowledge.worldbank.org/handle/10986/2589

World Bank, 2019, Improving education performance in Kenya: A policy report, Report No. AUS0001105, Washington DC: International Bank of Development and Reconstruction.

Zemsky, R., 2003, Have we lost the ‘Public’ in higher education? Chronicle of Higher Education: The Chronical Review, Vol. 49, No. 38, B7.

Author Biography

Moses Oketch

University College London, Institute of Education. Email: m.oketch@ucl.ac.uk

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