Addressing Critical Funding Needs of Private Tertiary Education Institutions and Students in Kenya

A Market Study and Intervention Design

Abstract

This thesis contributes to the research in innovative finance in the education sector by assessing the critical funding needs of private tertiary education institutions and students in Kenya and proposing potential investment structures to address these challenges. The study utilizes a qualitative research approach, including structured interviews, document analysis, and thematic analysis to gain insights into the challenges faced by private tertiary institutions, students, and financial institutions.

The proposed innovative financing facility leverages blended finance and a collective investment vehicle to mitigate risks, increase capital and support critical infrastructure. The findings provide valuable insights into the potential of innovative finance to unlock the potential of the education sector in Kenya and beyond. The main limitation of the research is its qualitative nature, which limits the generalizability of the findings and introduces subjectivity in the analysis. Nonetheless, the thesis creates opportunities for additional research in the field and showcases the need for empirical case studies to identify best practices and share successes and challenges across different stakeholders.