Efficiency and Total Factor Productivity Growth of Public Chartered Universities in Kenya
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Date
2024-10
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Publisher
AJOEI
Abstract
Purpose of the study: The study aimed at assessing efficiency and growth in productivity of
public universities in Kenya from 2017/2018 to 2021/2022 academic years.
Problem statement: University education is critical in economic development. Public
universities are funded by government. Despite of their importance, Kenyan public universities
face huge funding gaps which have affected their efficiency and productivity over time.
Methodology: The study employed the Malmquist Index to evaluate total factor productivity
growth of public chartered universities in Kenya. Additionally, a two-stage Data Envelopment
Analysis was used to determine the technical efficiency of these institutions.
Findings: The study found out that average TE score of 31 DMUs was 0.760. Out of the 31
public universities only 11 public universities were found to be technically efficient. The
DMUs recorded a mean TFP growth of 0.018 representing a decline by 98.2%. TFP change
was driven more by technical progress. Employee cost negatively affected technical efficiency
while other variables positively influenced efficiency.
Conclusion: The study concluded that the public universities experienced negative growth in total factor productivity and overall, they were technically inefficient.
Recommendations: The study recommends that public universities should strive to improve
their performance by 24% without altering their current input levels, while the government
should rationalize staffing and increase funding to address financial challenges. Policymakers
should prioritize efficient resource allocation strategies and set targets for monitoring
efficiency changes in universities over time. Additionally, universities should be encouraged
to develop innovative ways of generating internal revenue to supplement their income, given
the current financial constraints.
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Citation
Ogechi, V. O., & Gachanja, P. M. (2024). EFFICIENCY AND TOTAL FACTOR PRODUCTIVITY GROWTH OF PUBLIC CHARTERED UNIVERSITIES IN KENYA. African Journal of Emerging Issues, 6(17), 1-22.