RISK ACCEPTANCE AND FINANCIAL SUSTAINABILITY OF PRIVATE UNIVERSITIES IN KENYA
Rotich, D. K. - Masters of Business Administration, Finance Student, School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Kenya
Matanda, J. W. - Lecturer, School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Kenya
Bosire, J - Lecturer, School of Business and Entrepreneurship, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The general objective of this study was to establish the effect of risk acceptance on the financial sustainability of Private Universities in Kenya. The study was also guided by contingency planning theory. The study adopted the descriptive design. The target population comprised of 33 private universities in Kenya. The unit of analysis was the private universities whereas the unit of observation were the finance managers. Census sampling method was used to select all the finance managers in the private universities as the study sample size translating to 33 respondents. Questionnaires were used in the primary data collection and analyzed quantitatively. Secondary data collection sheet was used to collect secondary data. The study used 10% (N=4) of the target population for pilot testing of the validity and reliability of the research instruments. All the variables resulted in a Cronbach alpha, α>0.70, hence the questionnaire instrument was assumed to be reliable and adequate for the study. Descriptive and inferential analysis were done whereby percentages, means and standard deviation were used and presented in form of tables and figures. For the inferential analysis, correlation and pooled panel regression analysis were done in order to establish the relationship between the variables. This was used for drawing conclusions and recommendations for the study. The descriptive findings revealed moderate levels of risk acceptance (M = 3.06, σ = 1.113). From the regression analysis, it was established that risk acceptance (r=.870, b=.316, p<0.05) had a positive and statistically significant effect on the financial sustainability of private universities in Kenya. Moreover, the study concluded that Kenyan private universities have made progress in adopting risk management practices, though implementation remains uneven across institutions. Financial sustainability remains mixed, highlighting the need for more integrated risk management approaches. The study recommends that private universities strengthen stability by adopting proactive risk budgeting, comprehensive insurance, preventive strategies, standardized safety measures, and diversified income streams. Aligning financial planning with risk management will further enhance resilience.