Embrace enterprise for sustainability, Ruto tells varsities

President William Ruto has called on universities to embrace an enterprise-driven models to ensure financial sustainability and align education with the demands of the modern economy.

Speaking on Wednesday during the award of a charter to the Riara University at State House, Nairobi, the President said the institutions must integrate research, innovation and production into their core functions.

“It is no secret that chronic underfunding has been a critical impediment to the ability of our universities to design and implement market-oriented programmes that align with the needs of a modern economy,” he said.

The President acknowledged that public universities have faced severe financial constraints, with accumulated debts exceeding Sh120 billion by the end of 2022.

He noted that 23 universities were struggling and on the verge of bankruptcy.

However, he pointed out that through collaborative efforts, the government and universities have implemented interventions aimed at improving financial governance, diversifying revenue streams, and introducing cost-cutting measures to enhance sustainability.

“Through determined collaboration, we developed and implemented interventions to strengthen university governance, democratise their revenue streams, and implement cost-cutting measures,” he said.

Ruto stated the global trend where universities are evolving beyond academic institutions to become hubs of enterprise and innovation.

“Across the world, institutions of higher learning are moving towards a stronger role in enterprise, with many integrating research, innovation, and production into their core functions. The time has come for Kenya to embrace this model,” he said.

The President announced that the government, through the Kenya Network of Entrepreneurial Universities, is working with institutions to implement this shift. So far, 14 universities, including three private ones, have joined the initiative.

The number is expected to increase to 24 in 2025/2026, with a long-term goal of incorporating all public and private universities.