OPERATING INCOME FINANCING AND FINANCIAL SUSTAINABILITY OF PRIVATE TERTIARY TRAINING INSTITUTES IN KIAMBU COUNTY; KENYA
OPERATING INCOME FINANCING AND FINANCIAL SUSTAINABILITY OF PRIVATE TERTIARY TRAINING INSTITUTES IN KIAMBU COUNTY; KENYA
Kyaa, E. M. - Master of Finance Student, Jomo Kenyatta University of Agriculture and Technology, Kenya
Kimani, E. M. - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
Matanda, J. W. - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Financial sustainability is the institutions capability to finance its operating costs by having enough funds for financing current and future academic programs. Financially sustainable private vocational training college can reduce operational costs, formulate more innovative business strategies, and enhance customer satisfaction. However, there has been a problem of lack of sustainability of operations for many private tertiary training institutions in Kiambu County, Kenya. The delinquent is proved by private higher training institutes having a declining trend in their operating surplus ratio. There is no legislation in Kenya that provides money for private higher training institutes through the state budget demonstrating the delinquent behavior. The overall goal of this research was to assess operating income financing and financial sustainability of private higher training institutes in Kiambu County, Kenya. The objective of the study was to assess the effect of operating income financing on financial sustainability of private higher training institutes in Kiambu County, Kenya. The theory that supported the research study was operating income approach. The research was conducted using a descriptive research approach. The target population was all institutions of higher learning in Kiambu County. The accessible population of the study was ninety-four private higher training institutes. The sampling method of the study was census survey approach. Secondary data was collected using a secondary data collection sheet. The data collection technology was be tested in Nairobi County as a pilot project. Data was referenced, coded, and validated to facilitate entry. The statistical tool of analysis was the statistical package of social sciences. Descriptive and inferential approaches were performed, and tables were utilized to present the findings of the analysis. The study found a favorable relationship between operating income financing and financial sustainability of private tertiary training institutions in Kiambu County, Kenya. From the findings of the study some policy implications are suggested as follows: private tertiary training institutes to adopt adequate operating income financing to maintain their financial sustainability, the government of Kenya formulate a policy that shall enable the state to support private colleges through the annual fiscal budget, donor funding organizations to collaborate with private tertiary training institutions to provide financial support and to appoint their representative whose mandate is to make sure that donor funds are used wisely in the beneficiary private institution and organizations offering research grants to collaborate with private tertiary training institutions to provide research grants to students studying in the private colleges.
