Browsing by Author "Ngugi, Mbugua Hillary"

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    Financing Options and Liquidity of Public Universities in Kenya
    (Kenyatta University, 2025-05) Ngugi, Mbugua Hillary
    Financial challenges being faced by public universities is a worldwide problem. Recent studies have shown how public universities cannot meet their liabilities when due. This has led to many universities facing insolvency due to many liabilities and fewer assets to cover them. The study on liquidity is key to understanding how well our universities are equipped to perform better. Financing options available to public universities are a key concern to stakeholders eager to solve the financial difficulties faced by public universities. The study had a general objective, which was to assess the effects of financing options on the liquidity of public universities in Kenya. The study specific objectives were to: examine the effect of government capitation on the liquidity of public universities in Kenya, examine the effect of income-generating activities on liquidity of public universities in Kenya, examine the effect of tuition and other fees on liquidity of public universities in Kenya, examine the effect of donor funding on liquidity of public universities in Kenya and to establish the moderating effect of government policy on liquidity of public universities in Kenya. This study was concerned with the effects of financing options available to public universities on their liquidity. The study was advised by four theories: Agency theory, Resource dependency theory, Keynesian economics theory, and General systems theory. The study used a positivist philosophy. The study used a Causal research design. The study's population consisted of 31 Chartered public universities in Kenya, and it covered a period of five years, from 2015/2016 to 2019/2020. A census of all public universities was undertaken due to the small population size. The data was analysed using descriptive analysis that included calculation of means and standard deviation, and inferential analysis using a panel data regression model. The study used both primary and secondary data, which were quantitative in nature and collected from the financial Managers of all Public Universities and the Office of the Auditor-General. The study carried out diagnostic tests to better understand the relationships between the variables. The study obtained permits for research from the National Commission for Science, Technology and Innovation (NACOSTI) and ensured that all data collected was only used for the study. The study unveils intricate insights into university liquidity. Government capitation, tuition fees, income-generating activities and donor funds exhibit weak correlations with liquidity, meaning that they do not statistically influence liquidity levels in public universities in Kenya. The study unveils the importance of the government regulatory role as it has proved to have an influence on the liquidity of public universities. These findings underscore the financial complexities within universities, highlighting the necessity for strategic financial planning and resource allocation to ensure stability and resilience amidst shifting regulatory and economic landscapes. The study recommends that universities establish robust cash management practices, improve financial planning and budgeting, develop strong donor relationships, and prioritise the optimisation of income generation strategies to address the significant inverse relationship with liquidity. Policymakers are urged to review funding allocation policies, advocate for enhanced transparency in managing donor funds, and establish financial resilience policies for public universities while promoting collaborative funding initiatives.