GATS and financing of University education in Kenya (1978 – 2008)

Abstract

This paper analyses public expenditure on university education in Kenya within the selected sample period. The period was selected because it is within which a number of macroeconomic changes took place in the country besides other factors. The study seeks to establish the relationship between total public expenditure on education with key selected variables in university education namely student enrolment, staffing situation, university infrastructure and annual average teacher’s salary during the sample period The main findings reveal that five variables were significant: Student Enrolment (5%); Staffing situation (1%); GATS (5%); combined effects of GATS and Economic Reforms (10%) and, the combined effects of GATS, Economic Reforms with staffing (1%). The coefficients exhibited by these variables were relatively inelastic (0.35, 0.62, 0.71, 0.89 and 1.66 respectively). This implies that the government does not adjust its budgetary allocations to match the changes in education development aspects such as enrolment; staffing situation; level of infrastructure and, academic staff salaries among others, at the university education level. However, GATS presence had a significant effect on university staffing in the country, although other economic reforms carried out during the period were ineffective in boosting university education growth.