Challenges Of Implementation Of Diversification Strategies In Public Universities In Kenya

Abstract

Since the mid 1980s government funding to public universities has declined in real terms. The causes have been many but generally have included changing donor priorities, changing government rules and regulations to cope with national economic turbulence, international economic trends, legislation and political trends in the country. In response to the changes public universities in Kenya have started some non academic income generating activities to remain financially stable. Hence several public universities have started related and non related income generating activities. This means that the universities have started diversifying their businesses to remain financially stable. In an effort to start such businesses universities are faced by both internal and external challenges. The study was done to find out the internal and external challenges that public universities in Kenya face while implementing diversification strategies in non academic income generating activities. The study was conducted by conducting a census of all the public universities in Kenya. The researcher collected primary data using a structured questionnaire Also a face to face interview was conducted on a few selected respondents to get some clarifications and any further explanations. The study found out that, the non academic income generating activities face some internal challenges that may hinder growth and survival of such activities. The challenges include poor strategic planning, formulation and implementation of policies for such activities, using non professional managers, lack of commitment top from management and poor marketing With proper policies and employment of professionally trained managers in non academic income generating activities, public universities can overcome such challenges and compete very well nationally and internationally like other well known universities worldwide.