Joseph Mailu


Prof. Nemwel Bosire


CITATION: : Mailu J. & Bosire N. (November, 2018). Assessment of the factors influencing the financial perfomance of faith based universities in Kenya: A case study of The Presbyterian University of East Africa. International Journal of Economics and Finance (IJEF) Issue No XI, Volume 4, pp 115-135.


Many universities in Kenya are struggling to meet their financial obligations and the private universities are greatly affected by this. This can be evidenced by the numerous cases in various media outlets and court complaints filed by various university stakeholders. The recent spot check audit by the commission of university education in Kenya Methodist University (KEMU), Catholic university of East Africa (CUEA) and the Presbyterian university of east Africa (PUEA) to ascertain their sustainability is a justification to this persistent trend. The educational transformations and the increasing demand for quality employable graduates has influenced the emergence and direction of private universities and education which has been phenomenal and widely accepted and as such, it is pertinent to monitor their financial performance.This study assessed the following factors influencing financial performance of faith-based universities in Kenya, the influence of student enrolment, agency relationship, management and government policies on financial performance of these institutions. The theories that were considered in this study were the theory of the firm, stakeholder theory agency and stewardship theory. The study adopted a descriptive research design with a target population of 138 members of staff at the Presbyterian university at main campus. According to Kothari (2000), descriptive research design is used when the problem has been defined specifically and where the researcher has certain issues to be described by the respondents about the problem. The Data was collected mainly by use of questionnaire method and where necessary applied observation and interviews.The findings reveal that there is a positive and significant direct influence between the agency relationship, student enrolment, management policies and government regulations on financial performance of faith-based Universities in Kenya.

Keywords: :Financial performance, Liquidity, Profitability and Finance.
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