Formalizing and scaling university foundations across Africa can unlock new streams of capital and reduce overreliance on government subventions, writes Nicasio Karani Migwi.
Kenya’s public universities are grappling with a combined debt burden of KShs 72.37 billion as of March 2025, according to the Controller of Budget. Kenyatta University owes KShs 14.06 billion, the University of Nairobi KShs 12.75 billion, and others such as JKUAT, Moi, Egerton, and Technical University of Kenya each carry multibillion-shilling liabilities.
Proposed remedies include taxpayer bailouts, university infrastructure bonds, donor and DFI loans, commercialization of research, and revived income-generating programs. However, one of the most sustainable and globally proven solutions lies in strengthening university foundations, vehicles that mobilize resources and manage endowment funds with transparency and strategic foresight.
By structuring dedicated foundations, universities can attract diverse funding, strengthen governance, and expand their social and economic impact through strategic partnerships with governments, the private sector, and development agencies.
African universities should urgently formalize their corporate foundations to drive institutional sustainability and accelerate the continent’s national, continental, and global development aspirations.
Globally, mature universities have transitioned through four stages of social impact- philanthropic giving, corporate social responsibility (CSR), strategic CSR, and now corporate social innovation and shared value creation. To institutionalize these efforts, leading universities have established foundations or special purpose vehicles (SPVs) that drive partnerships and manage long-term investments.
These foundations act as structured investment arms, aligning universities’ teaching, research, and outreach mandates with broader societal goals. They also help institutions build endowments, manage scholarships, fund infrastructure, and implement sustainability initiatives in line with both national priorities and the UN Sustainable Development Goals (SDGs).
Examples from the United States demonstrate the scale and success of this model. The University of Wisconsin Foundation, established in 1958, manages US$ 5.4 billion in assets with annual inflows exceeding US$ 300 million. Similarly, UCLA’s Foundation, founded in 1945, oversees US$ 5.5 billion, while the University of Minnesota Foundation manages US$ 4 billion.
Other notable cases include the University of Illinois (US$ 2.99 billion), University of Oregon (US$ 2.9 billion), and Georgia Tech (US$ 2 billion). These endowments fund scholarships, faculty research, and infrastructure, reinforcing institutional excellence and independence.
The Model Can Work for Africa
To compete globally, Africa must nurture world-class research universities comparable to MIT, Oxford, Caltech, and the Indian Institutes of Technology. These institutions succeed because of three key factors: a concentration of top-tier talent, abundant and predictable financing, and agile governance that encourages innovation and strategic leadership. For African universities, formalized foundations can be the mechanism that delivers this trifecta.
Universities are not just centers of learning, they are critical instruments for achieving long-term national visions such as Kenya’s Vision 2030, Uganda’s Vision 2040, Tanzania’s and Rwanda’s Vision 2050, and Ghana’s Vision 2057. These plans aim to transition countries from low-income to high-income status, following the development trajectories of the Asian Tigers.
At the continental level, universities are central to realizing the African Union’s Agenda 2063, “The Africa We Want,” which envisions inclusive growth, sustainable development, good governance, peace, and cultural renaissance. In the global context, universities are equally vital in advancing the United Nations Sustainable Development Goals (SDGs), from eradicating poverty and hunger to promoting innovation, equality, and climate resilience.
Several Kenyan universities have already begun this journey.
- •Strathmore University Foundation, established in 2003 as a U.S. 501(c)(3) entity, mobilizes resources for scholarships, partnerships, and alumni engagement.
- •Kenyatta University Foundation, registered in 2011 in the U.S., supports academic programs and institutional development.
- •Mount Kenya University Foundation, launched in 2017, funds scholarships, climate action, and enterprise programs for graduates and persons with disabilities.
- •University of Nairobi Foundation, founded in 2022, focuses on financing research and innovation.
The Way Forward
Formalizing and scaling university foundations across Africa can unlock new streams of capital and reduce overreliance on government subventions. By embracing corporate-style governance and shared value creation, universities can fulfill their mandates in teaching, research, and community engagement- while contributing meaningfully to Africa’s transformation agenda.
For this to work, African universities should view foundations not merely as fundraising tools, but as strategic engines of sustainable development- driving institutional excellence and shaping the continent’s future.
Nicasio Karani Migwi Nduku is the Founder, MD and CEO of Afromaximus Consult, an end to end consulting house, and Afromillenium Awards, a global strategic marketing communications company.
