Every year, an estimated 50, 000   graduates are churned from  around 79  universities and constituent colleges  across the country but only a few of them are absorbed in the labour market while thousands languish on the streets and in villages. Traditional higher education has been primarily focused on creating job seekers rather than job creators. Although the intention to integrate entrepreneurship education into practice exists at the policy level, the gap between intention and action remains too large, causing hesitancy among higher education institutions.

A recent study conducted jointly by researchers from Strathmore University and Swansea University established that Kenyan universities face a dual challenge in their aspirations to be both centres of quality education and sources of innovation and economic development. 

The study, supported by a grant from the International Science Partnerships Fund (ISPF) at Swansea University,  enabled the scholars  to conduct research and develop workshops that brought together stakeholders from academia, government, industry, and civil society from over 10 countries. It was entitled “ Cultivating Sustainable Capacity to Empower Kenyan Entrepreneurial Universities and Nurture Future Talent.”

A study conducted in Kirinyaga County found that in addition to the over 60% failure of Kenyan graduates to secure formal employment, only 9.8 % start their own businesses. This reflects the low entrepreneurial uptake as well as poor support mechanisms for graduate-led entrepreneurship. “University entrepreneurship is a global phenomenon that catalyses innovation, self-employment, and economic resilience.  Universities that have embraced entrepreneurship offer a blend of both academic teaching and practical training in entrepreneurship, incubation programmes and research commercialisation,” the scholars observe in their findings, citing the Strathmore University entrepreneurship  ecosystem model.

The study notes that although Kenyan universities are well-positioned to play a key role in addressing the current problem of youth unemployment by focusing  on innovation, business creation, and knowledge commercialisation to transform higher education into an engine of economic resilience,  their potential impact is limited by ineffective policy implementation. 

Policy options

To tackle these systemic challenges, policymakers and university leaders are urged to adopt a multifaceted approach that can be addressed through three key strategic options.  The study identifies that the  first alternative is to integrate entrepreneurship deeply into the academic core of all relevant disciplines taught within universities to advance beyond autonomous business classes and integrate effective entrepreneurship units into various degree programmes. 

“Such a strategy, as demonstrated in the ecosystem of Strathmore University, can foster the creation of a universal innovative spirit and potentially increase the number of future business owners and entrepreneurs exponentially,” the study reports.

The scholars, however,  point out that the success of this depends on substantial investment in the redesign of the curriculum and a comprehensive faculty development programme that provides all academics with the required practical skills and teaching strategies. The second policy option is the development of a national structure for after-college entrepreneurial financing, which would primarily rely on special financing systems. This would entail the establishment of government-sponsored funds or leveraging existing ones, such as the Uwezo Fund, Youth Fund, Hustler Fund, and venture capital funds, specifically for university graduates. 

“These funds would include substantial seed grants, prototyping funding, and seed investments to bridge the financial gap between when the student venture is started and when it is accepted as a venture. The obvious benefit of this option is that it will directly address the most common obstacle, resource shortage and ensure de-risking private investment,” the scholars observe. 

The third alternative is the promotion of formalisation of collaborative relationships between universities, industry, and the government. This would imply developing platforms and incentive policies which allow industry collaborations to be promoted and rewarded.  “Such efforts might incorporate a tax-saving programme for companies that provide mentorship and internship opportunities, create joint research and development grants, and form innovation districts in which start-ups and established companies are co-located,” the study reveals. Strathmore University’s entrepreneurial ecosystem model is an example of how an organised ecosystem, comprising an innovative curriculum, incubation, mentorship, partnerships with government, industry, and funding, can support student ventures.

During the study, the Strathmore University team  comprised  Dr William Murithi, Dr Edward Mungai, Dr Patricia Gachambi and Phylis Korir.  The Swansea University Researchers were  Dr Samuel Ebie, Prof. David Pickenell and Dr Daniele Doneddu. KIPPRA’s Morris Mbaluka also participated.

Article written by: Otuma Ongalo