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

ABSTRACT

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.