Risk Management Strategies and Performance of Public Universities in Kenya

Abstract

Performance of Universities is paramount to academic and global entity. Risk encompasses any factor potentially hindering the attainment of goals and objectives of universities. As key educational institutions in Kenya, public universities face a range of risks that affect their overall performance. This study determines the influence of risk management strategies on the performance of public universities in Kenya. It focuses on proactive risk management, and internal risk control strategies on university performance. Balanced Scorecard (BSC) Model is used as the anchor theory. A cross-sectional research design was adopted. Primary data were collected using semi-structured questionnaires administered to 200 University Management officials, including Deputy Vice-Chancellors and Directors from Finance, Academics, HRM, and Quality Assurance departments across 10 public universities in Kenya. Secondary data on performance indicators, including research excellence, staff retention, student retention, and revenue generation, were obtained from University Annual reports covering 2019 to 2023. Data was analyzed using descriptive and inferential statistics with SPSS Version 27. A valid response rate of 81.5% (n=163) was obtained. Descriptive findings revealed that proactive risk management scored the highest average (M=3.52), followed by internal risk management (M=3.81), relationship risk management (M=3.76), This implies that while Kenyan public universities have robust information-sharing mechanisms and a relatively strong foundation in integrated and internal risk management, the comparatively lower score for proactive risk management suggests a potential strategic vulnerability, indicating that risk practices may be more reactive than forward-looking. The Correlation analysis showed strong positive relationships between proactive risk management and university performance (r=0.863, p<0.01), as well as between internal risk control (r=0.817, p<0.01) and performance. Regression analysis indicated that these strategies jointly explained 86.2% of the variance in performance (R²=0.862). Proactive risk management (β=0.400, p=0.000) emerged as the most influential predictor, while moderated regression revealed that information sharing significantly enhanced this relationship, increasing explained variance to 87.8% (R²=0.878). The study concluded that robust risk management frameworks, reinforced by timely and structured information sharing, are pivotal to enhancing performance in Kenya’s public universities. It recommended that university leadership should embrace proactive risk practices and sustain institutional competitiveness.