Research Grants and Financial Sustainability of Public Universities in Kenya: The Moderating Role of Institutional Capacity

Authors

  • Martin John Kabuu Mount Kenya University-Kenya
  • Peter Githae Muturi Mount Kenya University
  • Mercyline Kamande Mount Kenya University

Keywords:

Grant management; Fiscal resilience; Indirect costs; Resource leverage; Higher education

Abstract

Objectives: This article examines the relationship between research grants and financial sustainability of public universities in Kenya and tests whether institutional capacity moderates that relationship. Prior Work: Previous studies link external funding and revenue diversification to university finances, but rarely test whether organisational capacity changes the contribution of research grants. Approach: A quantitative explanatory cross-sectional design distributed 210 questionnaires within a 35-university recruitment frame; 195 usable respondent-level observations were analysed (92.9%). Descriptive statistics, correlation, ordinary least squares regression and hierarchical moderated regression were used. Results: Research funding was positively associated with financial sustainability (beta = 0.446, p < 0.001; R-squared = 0.199). Adding interaction terms increased explained variance from 59.3% to 63.7% (change in R-squared = 0.045, p < 0.001). Only research funding x institutional capacity was individually significant (beta = 0.127, p = 0.016); the other three funding-channel interactions were not significant. Implications: Universities should strengthen grant administration, compliance, financial reporting and indirect-cost recovery. Value: Research funding was the only funding channel for which significant moderation by institutional capacity was established.

Author Biographies

  • Peter Githae Muturi, Mount Kenya University

    Lecturer, School of Business and Economics

  • Mercyline Kamande, Mount Kenya University

    Dr. Mercyline Kamande the Deputy Vice Chancellor Academics and Research Affairs is an econometrician by training with an Masters (Economics) and a PhD (Economics) from the University of Dar es Salaam. She also holds a Higher Diploma in Information Technology, IMIS (UK). She joined Mount Kenya University Kigali Campus in May 2012 as a senior lecturer in the School of Business and Economics and served as the founding Postgraduate Coordinator at the campus between 2012 and 2014. 

    he served as the Principal MKU Kigali Campus between January 2015 and February 2016 rising to become the first Deputy Vice Chancellor Academics and Research Affairs Designate in MKU Rwanda until March 2021 when she relocated to MKU head Office to head the Directorate of Open, Distance and Electronic Learning as the Principal. Prior to joining MKU, Dr. Kamande was a Lecturer at the School of Finance and Banking in the Republic of Rwanda. She is a seasoned quantitative data analyst with a wealth of training and experience in impact evaluation research. Her research interests are mainly in public policy issues in areas of agriculture, food security and environment.

    Dr. Kamande has over 20 publications the latest being a forthcoming book chapter in the Handbook of Research on Competence-Based Curriculum and E-Learning in Higher Education. She has won various research grants the last one being USAID grant titled “a study on digital payments among Tea farmers in Rwanda”.

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Published

2026-10-31

Issue

Vol. 22 No. 5 (2026)

Section

Articles

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Copyright (c) 2026 Martin John Kabuu, Peter Githae Muturi, Mercyline Kamande

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How to Cite

Research Grants and Financial Sustainability of Public Universities in Kenya: The Moderating Role of Institutional Capacity. (2026). Acta Universitatis Danubius. Œconomica, 22(5), 24-41. https://dj.univ-danubius.ro/index.php/AUDOE/article/view/4322