Market Development Strategy and the Performance of Chartered Universities in Kenya

In recent years, universities in Kenya have encountered significant challenges, including declining government funding, heightened competition and shifting student expectations. To navigate these complexities, institutions have increasingly adopted market-oriented strategies to sustain operations and enhance performance. As a result, chartered universities have embraced various growth strategies to maintain financial stability and remain competitive in the evolving higher education landscape. This study examined the effect of market development on the performance of public and private chartered universities in Kenya. Grounded in the Strategic Fit Theory and the Resource-Based Theory, the study provides insights into how strategic expansion initiatives and financial frameworks shape institutional performance. This study adopted a cross-sectional research design to facilitate data collection and analysis. The target population comprised all chartered universities in Kenya, including 32 public and 22 private institutions. A census approach was utilized to ensure comprehensive representation. Primary data were gathered using structured questionnaires administered to vice-chancellors or senior management officials appointed by them. Descriptive statistics, such as frequencies, percentages, means and standard deviations, were employed to summarize the data. To test the research hypotheses, simple regression analysis was conducted to examine the relationships between key variables. The findings revealed significant correlations between market development strategy (r=0.357, p=0.014) and university performance. The study recommends that university management and stakeholders prioritize market development strategies.