Influence Of Revenue Streams On Financial Sustainability: Evidence From Kenyan Public Universities

This paper discusses the influence of various revenue streams (government grants, student fees, internally generated revenue, and endowment trust funds) on the financial sustainability of Kenyan public universities from the perspective of resource dependency theory. A longitudinal survey research approach was used and the final sample consisted of 31 public chartered universities in Kenya that had operated continuously for more than five years as of 2015. Panel data were extracted from the annual financial statements of these universities and other secondary data sources for the period from 2015 to 2020. A random effects regression model was applied to determine the correlation between the different revenue streams and financial sustainability. This study found that both government grants and student fees have significant relationships with the current ratio. By contrast, internally generated revenue and endowment trust funds have insignificant relationships with the current ratio. Not only do this study's findings contribute to existing empirical literature, but the results will also be beneficial to multiple stakeholders, such as university management, stakeholders, and researchers.

Debt Financing Options And The Financial Sustainability Of Universities In Kenya

We investigated the effect of debt financing options on the financial sustainability of universities in Kenya from 2015 to 2020. The data was obtained from 55 universities in Kenya registered by the Commission for University Education, as at December 31, 2020. We applied a random effects regression analysis in this study and the findings revealed that long-term debt has a positive, statistically significant impact on the financial sustainability of Kenyan universities. Thus, an increase in financial resources enhances financial sustainability. The findings further revealed that short-term debt and trade credit had no effect on financial sustainability. The study advises university management to employ optimal long debt levels because financing cost can affect an institution's financial abilities. Additionally, university management need to develop additional revenue-generating strategies to support their operations. Our study expands the literature on debt financing and the survival of higher learning institutions. We propose that future studies be conducted in other fields, including health and security, to contrast the influence of debt financing options on financial sustainability.