Annual Report (2018)

ACRONYMS

Association of Chartered Certified KPI Key Performance Indicators ACCA Accountants KRA Kenya Revenue Authority Association of Commonwealth ACU Kshs Kenya Shillings Universities MBA Master of Business Administration BAC Bachelor of Arts in Communication MC Management Committee Bachelor of Arts in International BIS MOU Memorandum of Understanding Studies MW Megawatts Bachelor of Arts in Development BDP Association of Schools of Public Studies and Philosophy NASPAA Affairs and Administration BPO Business Process Outsourcing National Environmental Management CAF Confederation of African Football NEMA and Authority CDE Challenge Driven Education NITA National Industrial Training Authority CEO Chief Executive Officer NPS National Police Service Centre for Intellectual Property and CIPIT Partnership for Enhanced Blended Information Technology PEBL Learning Centre for IT Security Privacy and CISPA PIC Policy Innovation Centre Accountability PhD Doctor of Philosophy Committee of Sponsoring COSO Organisational Framework PPA Power Purchase Agreement CPA Certified Public Accountant Prof. Professor CUE Commission of University Education PV Photovoltaic UK Department for International Sub Saharan Africa International DFID SAIMUN Development Model United Nation Conference Strathmore University Business DRAMASOC Drama Society Club SBS School DVC Deputy Vice Chancellor SDGs Sustainable Development Goals Emirates Academy of Hospitality EAHM Management SEDC Enterprise Development Centre East and Central Africa Social Strathmore Extractives Industries ECASSA SEIC Security Association Centre EMEA European Middle East and Africa SERC Strathmore Energy Research Centre School of Humanities and Social ENACTUS Entrepreneurial Action Us SHSS Sciences ERC Energy Regulatory Commission Strathmore Institute of Public Policy FIT Faculty of Information Technology SIPPG and Governance FKF Football Kenya Federation Senaca International Security Deutche Gesellschaft fur International SISC GIZ Company Zusammenarbeit SLS Strathmore Law School Haemoglobin Oxygen Affinity SSTL Strathmore Solar Testing Laboratory HOPE Modulation to Inhibit HBS Social Technical Approach to Road Polymerization STA Safety HOSCO Hospitality Connect STH School of Tourism and Hospitality ICA International Cooperative Alliances SUF Strathmore University Foundation Information Communication and ICT Strathmore University IT Students Technology SUITSA Association International Centre for Tax and ICTD Development SU Strathmore University International Criminal Tribunal for the TFTA Tripartite Free Trade Area ICTY Former Yugoslavia UK United Kingdom International Centre on Hotel United Nations High Commission for UNHCR ICHRIE Restaurant and Institutional Refugees Education United Nations Convention on the UNCLO ICJ International Court of Justice Law of the Sea Institute of Electrical and Electronics VC Vice Chancellor IEEE Engineering VCD Vice Chancellor Designate International Professional Practices Vocational Training and Education for IPPF VOCTEC Framework Clean Energy IOT Internet of Things Women in Sustainable Energy and WISE IT Information Technology Enterpreneurship KAM Kenya Association of Manufacturers TABLE OF CONTENTS

01 STRATHMORE AT A GLANCE 4 OUR IDENTITY 5 OUR VISION AND MISSION 5 OUR VALUES 6 OUR SCHOOLS AND RESEARCH CENTRES 7 MILESTONES OF STRATHMORE 8

02 STRATEGIC REVIEW 10 INTRODUCTION 11 OUR BUSINESS MODEL 14

03 FINANCIAL OVERVIEW 16 2018 HIGHLIGHTS 17

04 STAKEHOLDER ANALYSIS AND ENGAGEMENT 22

05 GOVERNANCE AND MANAGEMENT REPORT 26 WHO GOVERNS US 30 CORPORATE STRUCTURE OF THE UNIVERSITY 37 WHO LEADS US 38 STATEMENT FROM THE CHAIRPERSON 40 STATEMENT FROM THE VICE CHANCELLOR 42 CORPORATE GOVERNANCE REPORT 44

06 RISK MANAGEMENT REPORT 52

07 SUSTAINABILITY REPORT 56 HUMAN/ INTELLECTUAL CAPITAL 57 UNIVERSITY POWERED BY THE SUN 61

08 RESEARCH REPORT 66 09 STUDENT AFFAIRS REPORT 70 10 SCHOOLS REPORTS 74 11 FINANCIAL STATEMENTS FOR THE YEAR ENDED DEC 2016 112

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 3 01 STRATHMORE AT A GLANCE OUR IDENTITY

The Three Hearts represent the three Yellow: (Gold) Gold means races which, in 1961 when the eternity, perfection. University started, were segregated Blue: (Azure) Sky blue means in the colonial system of education. high ideals, high aims. Today, it symbolises the common aim of Red: (Gules) Blood red means parents, teachers and students in the ce, love, fortitude. educational process of Strathmore.

The Lion is the symbol of strength and courage, and of the determined for excellence and justice. It also represents Kenya, our country, which strives to attain all the qualities mentioned above.

The Motto "Ut omnes The Rose in full bloom represents love, unum sint" is Latin. It is a the source of all good desires and actions, quotation from a passage even if at times this means lo ce, as of the Gospel, and means represented by the thorns. That all may be one.

OUR MISSION

OUR VISION To provide all-round quality education in an atmosphere of To become a leading freedom and responsibility out-come driven excellence in teaching, entrepreneurial research research and scholarship, University by translating our ethical and social development excellence into a major and service to society. contribution to culture, economic well-being and quality of life.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 5 OUR VALUES

Our Values

SERVICE TO SOCIETY We serve society through research, education and 01 institutional citizenship.

EXCELLENCE Through sanctiﬁcation of work, we strive for work 02 excellence and the highest-quality output. LIFE-LONG LEARNING We develop programmes and adapt teaching methods that equip learners with skills and tools for 03 innovation and adaptability, and personal development. FREEDOM AND RESPONSIBILITY We respect the freedom of the 04 individual person and acknowledge that with freedom comes responsibility. SUBSIDIARITY We seek to provide solutions at the most immediate level 05 to a need.

PERSONALIZED ATTENTION We seek to provide an environment 06 where all our stakeholders can receive individual and customized service and support. ETHICAL PRACTICE We honour the beliefs, morals and values of the academic 07 profession and help others to do the same. COLLEGIALITY We respect one another’s commitment to a common 08 purpose and work together to meet the needs of our clients.

6 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 OUR SCHOOLS AND RESEARCH CENTRES

OUR SCHOOLS

With 13 undergraduate programmes, 11 master degrees, PhD programs and several executive training offerings. Strathmore University continues to provide competitive high quality education. This takes place in a diverse student community from 26 different nationalities, and served by staff with a balanced 1:1 representation of men and women from 12 different countries.

Strathmore Faculty of Institute for Information Mathematical Technology Sciences

School of Strathmore Humanities Law School and Social OUR Sciences SCHOOLS

Strathmore School of University Tourism and Business Hospitality School

OUR RESEARCH CENTRES

Strathmore is a research-intensive university with 18 research centers:

@iLabAfrica Strathmore Research and University Press Innovation Centre

Strathmore Tax Centre for Research in Research Centre Therapeutic Sciences

Strathmore Risk Centre for Research Management Centre and in Organisations, Strathmore Centre for Work and Family Value Investing

Strathmore Institute for Institute for Public Healthcare Policy and Management Governance

Kenya Climate Strathmore Innovation Institute for Family OUR RESEARCH Centre Studies and Ethics CENTRES Strathmore African Centre Strathmore for Business and Extractives Industry Human Rights Centre

Strathmore Centre for Strathmore Enterprise Intellectual Property and Development Centre Information Technology Law

Strathmore Strathmore Centre Energy Research for Sustainability Strathmore Centre Leadership Dispute Research Centre

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 7 MILESTONES OF STRATHMORE 2018 1961 School of Management and Commerce Strathmore College launches A-level merges with the Business School to form Science and Art tuition under the 2017 the Strathmore University Business School inspiration and encouragement of Master of Science in Development Finance the founder of Opus Dei, St Master of Science in Management Josemaría Escrivá in Agribusiness Doctor of Philosophy in Business Management 1966 2016 First intake of Bachelor of Arts in Communication accountancy students Bachelor of Arts in Development Studies and Philosophy Bachelor of Arts in International Studies 1982 Master of Laws Evening courses 2015 for Accountancy Master of Science in Information courses begin Systems Security 1989 Master of Science in Statistical Science Construction of new campus in Madaraka Master of Science in Bio-mathematics Estate commences Master of Science in Mathematical Finance 2013 Master of Public Policy and Management

1993 2012 Strathmore College Bachelor of Law merges with Kianda Master of Science in Mobile College in new Telecommunications and Innovation Madaraka campus Master of Administration in Healthcare Management 2001 Bachelor of Commerce 2011 Bachelor of Business in Bachelor of Science in Informatics Information Technology 2010 2002 Bachelor of Business Science in Bachelor of Science in Telecommunications Commission of Higher Financial Economics Master of Science in Educational Education awards Bachelor of Business Science in Management Strathmore with Letter of Actuarial Science Interim Authority to operate a university. Bachelor of Business Science in Finance Master of Applied Philosophy and Ethics

2006 2008 Master of Science in Bachelor of Science in Tourism Management Information Bachelor of Science in Hospitality Technology Management Master of Commerce Bachelor of Science in Leadership and Management 2007 Master in Science in Computer-Based Information Systems

8 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 2018 1961 School of Management and Commerce Strathmore College launches A-level merges with the Business School to form Science and Art tuition under the 2017 the Strathmore University Business School inspiration and encouragement of Master of Science in Development Finance the founder of Opus Dei, St Master of Science in Management Josemaría Escrivá in Agribusiness Doctor of Philosophy in Business Management 1966 2016 First intake of Bachelor of Arts in Communication accountancy students Bachelor of Arts in Development Studies and Philosophy Bachelor of Arts in International Studies 1982 Master of Laws Evening courses 2015 for Accountancy Master of Science in Information courses begin Systems Security 1989 Master of Science in Statistical Science Construction of new campus in Madaraka Master of Science in Bio-mathematics Estate commences Master of Science in Mathematical Finance 2013 Master of Public Policy and Management

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 9 02 STRATEGIC REVIEW VISION

To become a leading out-come driven entrepreneurial research University by translating our excellence into a major contribution to culture, economic wellbeing and quality of life.

Transformative Research Service Student and to Experience Innovation Society

Overall Initiative: Overall Initiative: Overall Initiative: Enabling Recruitment & Retention Enabling a Conducive social, cultural & economic of talented Staff learning environment wellbeing of the society

Overall Result: Overall Result: Overall Result: Emergence of highly Environmentally Increased engagement qualified graduates sustainable learning with the society through Infrastructure community service

Our strategic plan is aimed at helping us realise Pillar 1: Transformative Student Experience our vision of becoming a leading outcome-driven Our strategic directive is centred on our key entrepreneurial research University by translating stakeholder who is the student; this is why our our excellence into a major contribution to culture, priority is to provide them with quality education economic well-being and quality of life. We measure and lifelong learning opportunities. Strathmore our strategic success against three pillars which are; University’s reputation is further pegged on the • Transformative student experience transformative student experiences which include; • Research and Innovation high quality learning experience, supportive student financing, up-to-date technology for learning and • Service to Society vibrant extracurricular activities. We are integrating the Sustainable Development Goals (SDGs) into our pillars with special focus on SDG numbers 1, 4, 7, 8, 9 and 171 as they blend seamlessly with the pillars. By doing so, we transform our capitals2; human, natural, intellectual, manufactured, financial, and social and relationships, to further increase value for the University and our stakeholders.

1 Refer to Sustainability Report on page 57 2 Refer to Business Model on page 15 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 11 Ensuring High Quality Student Experience Strathmore University is one of the six East African universities that are creating quality-assured, credit- bearing courses delivered through blended learning. The courses are shareable across universities in the region with the aim of easing the burden on HUMAN CAPITAL INTELLECTUAL CAPITAL teaching staff and expanding delivery methods. The lead partner of Partnership for Enhanced and Blended Learning (PEBL) is the Association of Commonwealth Universities (ACU). Teaching is enhanced through innovation and technological FINANCIAL CAPITAL MANUFACTURED CAPITAL support. We understand that the University will constantly Strathmore University was also involved in the be in need of a high calibre of human capital to SPHEIR programme, which is a competitive grant facilitate the overall outcome of a transformative scheme established by the UK Department for student experience. International Development (DFID). It is designed In order to maintain quality standards in this regard, to catalyse innovative partnerships in low-income the University makes use of its internal quality countries to improve the performance, governance assurance mechanism of reviewing and evaluating and influence of higher education systems and the quality of education and research. This institutions. SPHEIR partnerships seek to transform framework provides a set of integrated policies and the quality, relevance, access and affordability of practices that guide management, implementation higher education to achieve sustainable change in and adaptation of quality assurance of our human higher education systems. SPHEIR is funding a few capital to ensure its sustainability. projects in Sub-Saharan Africa, Asia and the Middle East. Strathmore University takes a proactive approach towards employability of its graduates embedding it as one of the key outcomes in the University’s Pillar 3: Service to Society strategy. The development of a mechanism for Strathmore University strives to make a significant employability is supported by the office of the contribution to the community’s social, intellectual, Careers Development Services in collaboration economic and cultural development locally as well with the schools and faculties as well as employer as internationally. linkages. This supporting structure provides a bridge between students and the world of work We believe that through research, education through various career-related events and services. and institutional citizenship, we can contribute It also allows the creation of intelligence on the towards SDG 1; eradicating poverty in all its forms current labour market, which provides a basis everywhere. We require all our undergraduate for the continuous adaptation of the academic students to dedicate a minimum of 200 hours in offers to the changing labour markets. In addition, community service through the community-based community and industrial attachments are attachment programme. A dedicated department mandatory for a student to graduate. coordinates the activities of students and staff that cater for the less-privileged in society. Pillar 2: Research and Innovation The University uses a triple-helix research Student Financing and Community Outreach cooperation model that ensures students joining Strathmore are exposed to research opportunities. It has vibrant research centres and projects that foster innovation - SDG 9 -spanning across: health and health care management, mobile application SOCIAL AND FINANCIAL CAPITAL and cyber security, renewable energy and energy RELATIONSHIP CAPITAL efficiency, public policy, governance and integrity, entrepreneurship, sustainable tourism, mathematical Strathmore University provides financial aid to its modelling and applied statistics, extractive students in the form of scholarships, bursaries, industries and intellectual property. student discounts and loans that supports student experiences. The financial aid is provided by the Enhancing Learning through Technology university from its Financial Capital endowment fund, and other partners such as KIVA and Higher Educations Loans Board (HELB) who provide student loans. The number of partners in student financing increased from 19 in 2015 to 22 in 2018. The percentage number of students benefitting INTELLECTUAL CAPITAL MANUFACTURED CAPITAL from scholarships and loans has increased over the last four years from 12.3% in 2015 to 21.9% of the total student population. The ratio of Male to Female recipients was at 57:43% respectively.

FINANCIAL CAPITAL NATURAL CAPITAL

12 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 13 OUR BUSINESS MODEL

INPUTS

HUMAN INTELLECTUAL • Staff renumeration NATURAL 1.5B • 98 Publications • 19 Brown Bag Sessions • 784058 KWH Solar • Staff development CAPITALS Generated Energy 62.3M • 445 Qualified • 67% Green • Staff recruitment Academic Staff Buildings 1.78M SOCIAL & FINANCIAL RELATIONSHIPS • 456,984 Community MANUFACTURED • Grants • 1.2M service volunteer hours Ksh 282, 140 on Solar Energy • 283,000 Community • Loans Generation Maintenance Based attachment hours Ksh 866,492 24.45M • Donors • 12 International on Security Ksh 59,965 Trips

STRATEGIC PILLARS

TRANSFOR- • ENABLER 1: FACULTY MATIVE DEVELOPMENT STUDENT EXPERIENCE • ENABLER 2: PEOPLE MANAGEMENT

• ENABLER 3: RESEARCH SERVICE COMMUNICATION

AND AND QUALITY ENABLERS TO SOCIETY ASSURANCE INNOVATION

OUTPUTS

NATURAL HUMAN INTELLECTUAL • 98 Peer-Reviewed • 17% of the total

• 1,200 Graduates KPI s Publications KWH contributed to • 86.4% Employee • Anticipated increase in National Grid retention rate number of qualified • 10% ROI Solar Power quality academic Investment staff

SOCIAL & MANUFACTURED FINANCIAL RELATIONSHIPS • 594KWH for • 12.88M surplus, • 326 International University Use 64% increase from students from • 188,994KWH deficit of (308) Sold to KPLC 35 countries • 1 Police Post • 94 Partnerships within campus

14 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 1. STAFF REMUNERATION 2. STAFF DEVELOPMENT 3. STAFF WELFARE Staff salaries 36.8M 93.5M 1.5B 56,736,000

INPUTS 13.7% increase from 2018 64.8% increase

1,200 Graduates 86.4% Employee retention rate 13% increase in numbers

HUMAN CAPITAL OUTPUTS

1. PUBLICATIONS 2. DOCTORAL ACADEMY

445 Qualified academic staff 45.3M 6.9M • 13.5% increase from 2017 • 4.5% decrease from 2017 on Spent on Doctoral Academy

INPUTS library books

74 Doctoral candidates • Anticipated increase in number of qualified quality academic staff INTELLECTUAL CAPITAL OUTPUTS

1. SOLAR INNOVATIONS 2. SECURITY 1.2M on maintenance 24,450,000 INPUTS • 6.4% Increase from 2017

594 KWH University use 188,994 KWH Sold to KPLC MANUFACTURED • 1.2% Increase from 2017 OUTPUTS CAPITAL • 1.2% increase from 2017

1. POWER GENERATION 784,058 KWH, 67% Green Buildings INPUTS

17% of the total KWH contributed to national grid NATURAL • 10% ROI solar power investment CAPITAL OUTPUTS • % of savings made in cubic litres (VN)

1. COMMUNITY OUTREACH 2. IMPORTANT NETWORKS AND CONNECTIONS AND INTERACTIONS 60 Macheo mentors Community 456,984 12 International trips service volunteer hours • 33.3% increase INPUTS • 283,000 hours of community • 150 Macheo candidates based attachment from di cult backgrounds

94 Partnerships 30 High Level visiting dignitaries including then Education Cabinet SOCIAL AND Secretary Amina Mohamed RELATIONSHIP 42% of Macheo students • 2 visits by the President Uhuru Kenyatta • Sitting Prime Minister Theresa Maye

OUTPUTS mentored qualified to join CAPITAL university compared to • Nobel Laurette Yunnus Muhammud national average is 13% • 326 International Students representing 35 nations • Student Satisfaction 4.16 in a % point rating

1. GRANTS 2. LOANS 3. DONORS Ksh ‘000 Ksh ‘000 Ksh ‘000 282, 140 866,492 59,965

INPUTS 0.53% decrease from 2017 7.6% decrease from 2017 38% increase from 2017

Shs ‘000 64% increase from deficit of (308) 12,880 Surplus

FINANCIAL OUTPUTS CAPITAL STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 15 03 FINANCIAL OVERVIEW FINANCIAL STATEMENTS ALIGNED WITH FOCUS ON THE STRATEGIC PILLARS

STRATHMORE 2018 2017 UNIVERSITY Student Research & Service to Student Research & Service to STATEMENT OF Experience Innovation Society Total Experience Innovation Society Total COMPREHENSIVE ShsM ShsM ShsM ShsM ShsM ShsM ShsM ShsM INCOME Fees & Student Related Income 2,990 - - 2,990 2,509 - - 2,509 Research & Training Income - 513 - 513 - 398 - 398 Donations and Grant Income - - 68 68 - - 52 52 Total Income 2,990 513 68 3,572 2,509 398 52 2,958

Teaching & Operating Expenses (2,842) - - (2,842) (2,842) - - (2,393) Research & Consultancy Expenses - (329) - (329) - (225) - (225) Scholarship & Community Outreach Expenses - - (388) (388) - - (341) (341) Total Expenses (2,842) (329) (388) (3,559) (2,393) (225) (341) (2,958) Surplus (deficit) for the Year 148 184 (319) 13 116 173 (289) (0)

YR 2018 GROWTH IN INCOME AND EXPENDITURE AS COMPARED TO YR 2017

Sustainable Growth rate achieved with 21% 20% a 21% income growth as compared to 21% Growth in Growth in Income Expenditure 20% growth in expenditure. (Kshs. 614M) (Kshs 601M)

STUDENT EXPERIENCE FEES & STUDENT RELATED INCOME (KSHSM)

Growth in Student Growth Yr 2018 Population: 2,990 in Fees & Yr 2017: 5,732 Student Students 6% 19% Related Yr 2017 2,509 Yr 2018: 6,061 Income Students

Growth in STUDENT EXPERIENCE Academic & Growth in EXPENSES (KSHSM) Administrative Teaching & Staff Population Operating 11% (FT&PT): 19% Yr 2018 Expenses 2,842 Yr 2017: 1,075 Staff Yr 2018: 1,197 Staff Yr 2017 2,393

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 17 RESEARCH & INNOVATION RESEARCH & TRAINING INCOME (KSHSM)

Growth in Research Growth in Publications: Yr 2018 513 Yr 2017: 66 Research 27% Publications 29% & Training Yr 2018: 84 Income Yr 2017 398 Publications

RESEARCH & TRAINING Growth in Corporate INCOME (KSHSM) Training & Related Growth in Activities: Yr 2017: 109 Events & Research & Yr 2018 329 38% Activities 46% Consultancy Yr 2018: 150 Events & Expenses Activities Yr 2017 225

SERVICE TO SOCIETY DONATIONS AND GRANTS INCOME (KSHSM)

Growth in Number Growth in Yr 2018 68 of Scholarship Donations Donations: & Grants 30% Yr 2017: 30 Donors 33% Yr 2017 52 Income Yr 2018: 39 Donors

Growth in Scholarship Awards: Growth in Yr 2017: 485 Scholarship SCHOLARSHIP & COMMUNITY Students 13% 12% Expenses OUTREACH EXPENSES (KSHSM) Yr 2018: 550 Students

Yr 2018 388

Growth in Community Outreach Activities: Yr 2017 341 Yr 2017: 2,315 Activities 14% Yr 2018: 2,634 Activities

Strategic Student Experience Research & Innovation Service to Society TOTAL COST APPROPRIATION Pillars Provision of Qualified Re- Teaching & Provision of Qualified Teaching Staff ie. Costs incurred on search & Consultancy Staff Research teaching staff salaries, doctorate staff train- supervision of students ie research fellows, aca- Staff Costs ing costs, part-time teaching staff, teaching on community service demic conferences costs, (41%) staff benefits. program hire of consultants etc. Administrative Costs Provision of Qualified Student Support Provision of Qualified Provision of Qualified Staff ie. Faculty Administration Staff Costs, Research Support Staff Community Outreach Teaching and Administra- Students' Mentoring Staff Costs, Admissions ie. Research Office Staff Program Staff ie. tive Staff Staff Costs, Library Staff Costs, Cafeteria Costs, Doctorate Academy Community Outreach Research Costs (11%) Staff Costs, Student Financial Aid Staff Administrative Staff Costs Department Staff Costs Costs, Medical Center Staff Costs, ICT Staff Staff Costs etc. & Benefits etc. Costs, Finance Staff Costs etc. , Costs incurred to 37% 41% Scholarship Research & Patent Costs mentor and tutor high Provision of fees bursaries, accommodation & Communi- on the Solar Bicycle in school students from and upkeep to bright and needy students ty Outreach remote areas marginalized areas (Macheo Program) Provision & maintenance Provision of medical Provision & maintenance of infrastructure of infrastructure and envi- supplies and logistic 11% 11% and environment conducive to learning ie. ronment conducive to re- costs for medical work Security services, cleaning & gardening search ie. conference travel camps in remote areas, Administra- services, building maintenance, software and logistics costs, hire of material and logistic tive Costs Administrative licenses, solar power maintenance costs, facilities, research data col- costs incurred to con- (37%) Scholarship and Staff Costs sports facilities maintenance, costs of pro- lection costs, cleaning and struct classrooms for Community Outreach viding laptops to all first year undergraduate maintenance of research primary and secondary students etc offices, research software schools in remote licenses etc areas etc

18 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 STRATHMORE UNIVERSITY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018

Assets 2018 2017 2018 2017 Non-current assets KShs M KShs M Capital fund & Liabilities KShs M KShs M Tangible & Intangible Assets 5,145 5,236 Capital & Revaluation Reserves 3,304 3,576 Endowment & Designated Funds 61 23 Designated Funds 106 106 5,205 5,259 3,409 3,682

Current Assets Non-Current liabilities Inventory 45 57 Endowment & Designated Funds 500 464 Trade & Other Receivables 749 763 Long-term Loans 707 791 Prepayments 24 33 1,207 1,255 Amounts Due to Related Parties 0 11 Current Liabilities Cash & Cash Equivalents 185 35 Payables & Accrued Expenses 1,433 1,073 1,003 898 Short-term Loans 159 147 1,592 1,221 Total Assets 6,208 6,158 Total Equity & Liabilities 6,208 6,158

REVENUE GENERATED PER 100 KSHS OF ASSETS

“Asset utilisation increased Kshs. 58 21% Increase in by 21% and this is more Asset utilisation desirable for achievement of financial sustainability.” Kshs. 48

Yr 2018 Yr 2017

WORKING CAPITAL RATIOS

Declined Current Assets to Improved Cash & Cash Improved Cash & Cash Equivalents Current Liabilities Equivalents to Current to TOTAL ASSETS Liabilities

74% 3% 12%

63% 3% 1%

2018 2017 2018 2017 2018 2017

“There was an improvement in Cash and Cash Equivalent, despite declined Current Asset Ratio.”

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 19 GEARING RATIOS

Reduced External Debt Funding Reduced Long-term External Debt Funding

13% 15% 74%

63%14% 11%

2018 2017 2018 2017

“A decline in External Debt Funding was realised as a result of timely repayment of Current Loan Obligations.”

STRATHMORE UNIVERSITY STATEMENT OF CASHFLOW AS AT 31 DECEMBER 2018

Yr 2018 Yr 2017 KShs M KShs M Net Cashflows from Operating Activities 328 182 Net Cashflows from Investing Activities (73) (111) Net Cashflows from Financing Activities (105) (138) Net Cashflows 150 (66) Add Cash & Cash Equivalents B/F 35 101 Cash & Cash Equivalents C/F 185 35

CASHFLOW APPROPRIATIONS RATIOS

433% Increase in Cash & Cash 34% Decrease in Net Capital 24% Decrease in Net Loan Equivalents (KShs. M) Investments (Kshs. M) Repayments (Kshs. M)

185 138 12% 111 105 73

2018 2017 2018 2017 2018 2017

“A 433% increase in Cash & Cash Equivalents improved the University’s Cashflow position.”

20 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 21 04 STAKEHOLDER ANALYSIS AND ENGAGEMENT Strathmore University acknowledges that each of our stakeholders forms an integral part of our institutional structure. We facilitate in-depth analysis and engagement so as to strengthen our interdependency with our wide range of key stakeholders.

In 2018 we implemented the AA1000 Stakeholder Engagement Standards because it has continuously established grounds for our quality stakeholder engagement. Also, this framework is dedicated to creating responsibility and transparency within our stakeholder network in both our corporate and non-corporate capacities.

Principles of Stakeholder engagement • Inclusivity • Materialism • Responsiveness

The principles of inclusivity, materialism and responsiveness are effected to facilitate the application of our tailor-made action plans to satisfy our stakeholder needs at various levels of intensity as well as priority thus allowing for a systematic and organised way of engaging our stakeholders at all times.

Our Stakeholders Graphical Representation

Stakeholder Engagement Potential Quality education; Quality facilities; International exposure; International faculty; students for Quality research supervision; Flexible learning programmes; International graduate reputation; Relevant programmes. programmes High calibre of teaching staff; A valued certificate; Employability; Entrepreneurial Students skills; Ability to proceed to graduate level; Sporting facilities; Extracurricular activities; IT-enabled processes; Mentoring and coaching.

Parents/ High education standards; Safety and security; Quality services at affordable Guardians costs; Employability; Well-groomed students.

Right skills and capabilities; Application of theory to practice; Critical and Employers analytical skills; Self-driven individuals.

Staff Professional development; Good working environment; Family friendly.

Donors Institutional leaders; Role models; Accountability; Accurate and timely reporting.

Value addition; Joint ventures; Excellence; Ethical behaviour; Practice-focused Partners innovation in the curriculum; International linkages.

Favourable payment conditions; Develop broader partnerships; IT-enabled Sponsors processes

Raising their profile; Employment opportunities; Consultations in matters that Local impact their operations; Access to healthcare and sports facilities; Consultancy community services; Student volunteering A University to be proud of; Consistent engagement with the University; Alumni Enhanced brand image

Adherence to set standards; Relevant curriculum; Quality resources in terms of students and staff; Quality and affordable education for all students; Potential Regulatory student undergraduate programmes agencies Quality education; High reputation; Qualified faculty and staff; Employability; Extracurricular activities; Soft skills development; Mentoring and coaching.

Research Innovations; Solutions; New thinking; Future thinking funders

Nature As our ultimate service provider, home and environment

They provide the raw materials or components that the University uses to Suppliers conduct its affairs

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 23 Students ACADEMIC DEGREE REQUIREMENT FOR Students, our major stakeholder, are at the centre THE CURRENT POSITION of the University’s functions. Therefore the level of satisfaction experienced by the students mirrors the 71 % quality of service offered by the university.

In 2018, the Student Council represented Strathmore University’s student body by acting as a forum through which students could express 20 % their views concerning the University’s student experience as stipulated in the University’s statutes. YES NO Furthermore, in the year in review, we conducted a graduate’s satisfaction survey to measure our student experience rating. The University attained a TIME OF GETTING THE JOB/INTERNSHIP 4.16 out of 5.00 points. 80 % Students employment status and further education after graduation Strathmore University understands that the development of our students does not stop at graduation. Therefore, in order to focus our efforts % on preparing our students for life after university, 20 Strathmore University’s Careers Office held 3 Career Fairs which equipped our students with updated 3-0 moths 6 - 4 moths knowledge on career-related decisions necessary to firmly establish themselves in the highly competitive job market. EMPLOYED ORGANIZATION

In addition, a graduation exit survey conducted on the graduate class of 2018 provided important 82 % feedback on their employment status after university. The survey revealed that within three months after graduation, 28% of the respondents 6 % were already employed which is a 4% increase 13 % from previous years. 61% of those employed had engaged with the Strathmore University’s Career Private NGO/ Public Sector Sector Non Proﬁt (Government Development Services office for tips and guidance. OR Parastatal)

The following graphs summarise the results of the graduation exit survey: GRADUATES CONSIDERING SU POST GRADUATE PROGRAMS

CURRENT POSITION RELATED TO CAREER PATH 94 %

86 %

6 %

YES NO 14 %

YES NO

24 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Parent/ Guardian Parents and guardians of students provide foundational services to students through their closer interaction with the student when off-campus. Therefore proactive participation of parents/guardians in the student’s education is key to the promotion improved student experience.

To facilitate this engagement, Strathmore University hosted 19 parent/guardian forums in 2018 to solidify the formed partnership with the parents and guardians the University and also to provide reciprocal support for the students’ successful development.

Regulators The Commission for University Education (CUE) is mandated to assure the public and stakeholders that education offered in universities authorized to operate in Kenya is of good quality, accessible, affordable, equitable and of relevance in accordance with The Constitution of Kenya, 2010; The Universities Act No. 42 of 2012; The Universities Act, 2016; the Kenya Vision 2030 and the strategic direction of the Government. To this effect, CUE conducted a quality audit in all universities in Kenya. The audit team comprised of five members and focused on 13 key areas as specified in the terms of reference. It is worthwhile to note that Strathmore University passed this quality audit in nearly all aspects that were audited and a few areas of recommendation were made. The Office of the Deputy Vice-Chancellor, Academic & Student Affairs will oversee the implementation of the recommendations within the next academic year.

Research is one of our strategic pillars. Therefore, to continue to develop our research, we must adhere to the regulations set out by National Council for Science and Technology in line with the Science, Technology and Innovation Act of 2012.

Supplier engagement Strathmore University engages a large number of suppliers of goods and services that are essential to the effective running of our institution. In this respect, our engagement with our suppliers is largely informed by a Service Level Agreement (SLA) tool. This tool is utilised in all our procurement activities, which include tendering and contract procedures.

In addition, the University has made a commitment to engage its suppliers under the guidance of highly ethical standards in our terms and conditions which protect rights, obligations, privileges of our suppliers and the University itself.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 25 05 GOVERNANCE & MANAGEMENT REPORT STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 27 FROM LEFT TO RIGHT: DR. EDWARD MUNGAI - EX-OFFICIO MEMBER AND DVC PLANNING AND DEVELOPMENT | DR. VINCENT OGUTU - EX-OFFICIO MEMBER AND VICE CHANCELLOR DESIGNATE | MRS. BERNADETTE MUSUNDI - CHAIRPERSON | MR. FERNANDO AIZPUN - MEMBER | MR. FERNANDO AIZPUN - MEMBER | DR. ELIZABETH GACHENGA - EX-OFFICIO MEMBER AND DVC ACADEMIC AND STUDENT AFFAIRS | MRS. CHRISTINE OCHIENG - MEMBER

28 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 FROM LEFT TO RIGHT: PROFESSOR JOHN ODHIAMBO - SECRETARY AND VICE CHANCELLOR | DR. SUSAN KIBUE - MEMBER | PROFESSOR IZAEL PEREIRA DA SILVA - EX- OFFICIO MEMBER AND DVC RESEARCH AND INNOVATION | PROFESSOR TIMOTHY WAEMA - MEMBER | MR. DAVID OWINO - MEMBER NOT IN PICTURE: MS. MARGARET OSURE - MEMBER | DR. CAESAR MWANGI - DEPUTY CHAIRPERSON | MR. ANTHONY KAHINDI - EX- OFFICIO MEMBER AND UNIVERSITY SECRETARY

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 29 WHO GOVERNS US

MRS. BERNADETTE MUSUNDI DR. CAESAR MWANGI CHAIRPERSON DEPUTY CHAIRPERSON

KEY AREA OF SPECIALITY – MARKETING KEY AREA OF SPECIALITY – STRATEGY, CHANGE AND RISK MANAGEMENT MEMBER OF THE COUNCIL SINCE – 2008 MEMBER OF THE BOARD SINCE - 2012

Mrs. Musundi is the former Permanent Secretary Dr. Mwangi is currently the Managing Director at in the Office of the Vice President and Ministry of the Centre for Personal Leadership and a non- Home Affairs, Heritage and Sports. She was the Executive Director of the ICEA Lion Group. He Vice President of the African Women Co-operators previously served as the Managing Director of Sasini in the International Cooperative Alliances (ICA) Ltd, a publicly listed agribusiness and as Regional Global Women Committee and has also been Director of the Global Village Energy Partnership. involved in spearheading reforms in Kenya’s Prisons Department and policies that pertain to gender in He has a PhD in Organisational Performance the country. and Change Management from the University of Johannesburg and an MBA from WITS Business She has been instrumental in the coordination of School in Johannesburg. administrative steps which led to the establishment of the Children’s Act. She has sat on several He is a Certified Public Accountant (K), a Certified boards of directors, among them as a Trustee of Internal Auditor and a Certified Executive Kianda Foundation, as the current Chairperson Leadership Coach. of Transparency International (Kenya), Kenya Girl Guides Association and Trefoil Women’s Guild, Highridge Teachers College, and has served on the boards of many schools. Previously, she was the Headmistress of Sing’ore Girls – Uasin Gishu County and was also the Chairperson of Regina Pacis College - a constituent College of CUEA.

Mrs. Musundi continues to participate in policy and governance at the national level having recently served as the Chairperson of the selection panel for IEBC commissioners in 2016.

She is a holder of a Bachelor of Arts and Master of Arts with a specialization in Marketing.

30 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 PROFESSOR JOHN ODHIAMBO MR. FERNANDO AIZPUN SECRETARY AND VICE CHANCELLOR MEMBER

KEY AREA OF SPECIALITY – KEY AREA OF SPECIALITY – ARCHITECTURE MATHEMATICAL STATISTICS AND PROJECT MANAGEMENT MEMBER OF THE COUNCIL SINCE – 2003 MEMBER OF THE BOARD SINCE – 2008

Prof. Odhiambo is the current Vice Chancellor An experienced architect, Mr. Aizpun has worked of Strathmore University and has served in that with Arquitecturay Urbanismo in Spain, Imara position for the past fifteen years. He is now on his Educational Foundation, Techtura International, last tenure of service. He previously worked as a (and) Archten Architects and Questworks Professor of Statistics at the University of Nairobi Architecture Ltd. in Kenya. He has been a registered and as the Chairman of the Department (now architect with the Board of Registration Architects School) of Mathematics. He has also consulted and Quantity Surveyors of Kenya since 1999. for Rockefeller Foundation’s Africa Regional Programme. He was a mentor at Strathmore College for six years and has been a trustee of Strathmore Educational He has a PhD (Mathematical Statistics), Master of Trust, a Director of Hodari Boys Club and Mbagathi Science (Mathematical Statistics) and Bachelor of Study Centre. Science (Mathematics) all from the University of Nairobi. He holds a Master of Architecture and Town Planning from the University of Navarra, Spain.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 31 WHO GOVERNS US

PROFESSOR TIMOTHY WAEMA DR. SUSAN KIBUE MEMBER MEMBER

KEY AREA OF SPECIALITY – IT AND EDUCATION KEY AREA OF SPECIALITY – ARCHITECTURE MANAGEMENT MEMBER OF THE COUNCIL SINCE - 2015 MEMBER OF THE BOARD SINCE – 2015

As a Professor of Information Systems at the Dr. Kibue is a Senior Lecturer at the Department University of Nairobi, he has carried out research of Architecture in the School of Architecture and and consultancy in many aspects of ICT and Building Sciences at Jomo Kenyatta University development including the growth of the internet of Agriculture and Technology (J.K.U.A.T) where market in Kenya; the assessment of Kenyan ICT she has been working for over 20 years. She has sector performance policy development for taught diploma, undergraduate and post-graduate business process outsourcing and offshoring in architecture students over the years and has also Kenya; the impact of ICT on governance; bridging been an external examiner at Makerere University the global digital divide in ICT and agriculture; the in Uganda, Ardhi University in Tanzania and at the role of ICT in alleviating poverty; and e-readiness Polytechnic of Namibia. assessment of 50 universities in the Eastern African region, among many others. Previously, she was a member of the Advisory Board of the United Nations Capital Master Plan, He has led several research awards programmes New York and was in March 2019 nominated to the including research grants in ICT for Development College of Fellows at the Architectural Association Tenable in Universities in Eastern and Southern of Kenya. She holds a PhD in Architecture. Africa; research grants on Innovative Application of ICTs in Addressing Water-related Impacts of Climate Change in Africa, Asia and Latin America; and the African Climate Change Leadership Program. Prof. Waema has been involved in developing nearly all the national policy and strategy documents in ICT and Science, Technology and Innovation. He has also been key in leading the innovation agenda of the University of Nairobi, including establishing the Computing for Development Lab (C4DLab), the University ICT Innovation Hub as well as organizing the Nairobi Innovation Week for four years running. He has published widely in journals, conference proceedings and books. He holds a PhD in Strategic Management of Information Systems from the University of Cambridge (UK) and an Honors Degree in Electrical and Electronics Engineering from the University of Bath (UK).

32 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 MR. DAVID OWINO MRS. CHRISTINE OCHIENG MEMBER MEMBER

KEY AREA OF SPECIALITY - FINANCE KEY AREA OF SPECIALITY – INSTITUTIONAL AND INVESTMENT DEVELOPMENT MEMBER OF THE COUNCIL SINCE – 2015 MEMBER OF THE COUNCIL SINCE – 2017

David is a Managing Partner at Ascent Capital. He Mrs. Ochieng is an institutional development previously worked for 12 years at Centum, a leading professional working in the water and sanitation East African Investment Company where he quickly sector, and works in the Water Global Practice of rose to Company Secretary, acting Managing the World Bank on the institutional assessment Director and Head of Private Equity Division and development of water utilities. Previously, overseeing a portfolio of over $150m. she worked in the Democratic Republic of Congo and Somaliland in their water sector institutional He holds an MBA from Strathmore University reforms, transitioning both countries from being Business School and a Bachelor of Science in recipients of ad-hoc emergency interventions to Business Administration from United States being leaders of long-term development programs. International University (USIU). Mrs. Ochieng also leads personal and professional He is a Certified Public Accountant (K) and Certified development activities for women. She is a co- Public Secretary. founder of Feminine Genius, a program which offers a deeper understanding of the human process to motivate each individual to attain her full feminine potential, for personal good and the common good.

She holds a Master’s degree in Business Administration from the Australian Graduate School of Management, a diploma in Human Resource Management and she speaks fluent French.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 33 WHO GOVERNS US

MS. MARGARET OSURE DR. VINCENT OGUTU MEMBER EX-OFFICIO MEMBER AND VICE CHANCELLOR DESIGNATE KEY AREA OF SPECIALITY – PENSION MANAGEMENT AND LAW KEY AREA OF SPECIALITY – ORGANIZATIONAL MANAGEMENT MEMBER OF THE COUNCIL SINCE - 2017 MEMBER OF THE BOARD SINCE – 2016

Appointed to the University Council in 2017, Dr. Vincent Ogutu was appointed Vice Chancellor Margaret is the Secretary General of the Association Designate in May 2018. He self-identifies as a of Pension Administrators of Kenya and a partner teacher and leverages every opportunity he gets to at NESSCAPE Experts and a visiting lecturer at the challenge students and audiences to nurture their United Nations International Training Centre (ITC- talents to an incredible degree and then to put them ILO) in Turin, Italy. Previously she was the Secretary at the service of a greater purpose. General of the East and Central Africa Social Security Association (ECASSA), the apex body of Prior positions he has held at Strathmore are DVC 25 public pension and health insurance institutions Planning and Development, Vice Dean for Executive and the Regional Focal Point Director of Eastern Talent Development at Strathmore University and Horn of Africa for the International Security Business School (SBS), Director of the SBS Regional Association, Geneva. Margaret has served as Vice- Academies in Uganda, Rwanda and Tanzania, and President of the Africa Pension Funds Network at founding MBA Programme Director. Africa Development Bank, Abidjan. Dr. Ogutu holds a PhD in Organisational She holds a Bachelor of Laws from the University Management from Rutgers University, a Master of of Nairobi and a master’s degree in Public Science in Financial Economics from the University Administration from the University Of Liverpool, of London and a Bachelor of Arts in Economics UK. She is a Certified Secretary, a member of the from the University of Nairobi. He sits on several Law Society of Kenya and the Institute of Certified boards including Strathmore University Foundation, Secretaries. B Lab East Africa, Nafisika Trust, and is an advisor to several startups in Kenya and the USA.

34 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 DR. ELIZABETH GACHENGA PROFESSOR IZAEL PEREIRA DA SILVA EX-OFFICIO MEMBER AND DVC ACADEMIC EX- OFFICIO MEMBER AND DVC RESEARCH AND STUDENT AFFAIRS AND INNOVATION

KEY AREA OF SPECIALITY – ENVIRONMENTAL LAW KEY AREA OF SPECIALITY – RENEWABLE ENERGY MEMBER OF THE BOARD SINCE – 2016 MEMBER OF THE COUNCIL SINCE – 2010

An advocate of the High Court of Kenya, Dr. Prof. Izael Pereira Da Silva is an Associate Professor Gachenga holds a doctorate from the University of at Strathmore University and the Deputy Vice Western Sydney, and a Master of Environmental Law Chancellor (Research and Innovation). He was and Bachelor of Laws from the University of Nairobi. previously the Director of Makerere Centre for Her doctoral research highlighted the integration of Research and Energy Conservation. customary law systems in statutory frameworks of water governance and sustainable development. His topics of interest include Biomass, Demand Side Management, Photo Voltaic Rural Electrification, She has lectured and tutored corporate and Renewable Energy and Small Hydro. business law at the University of Western Sydney and at Strathmore University. She has worked as He holds a PhD in Power Systems and Engineering a faculty manager at Strathmore University and from the University of Sao Paolo (Brazil) and is a as a legal and knowledge consultant for Hamilton, Certified Energy Manager. Harrison and Mathews, Kenya.

She has published several papers and peer-reviewed articles. She co-edited a book on Governance and Institutions and Human Conditions.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 35 WHO GOVERNS US

DR. EDWARD MUNGAI MR. ANTHONY KAHINDI EX-OFFICIO MEMBER AND DVC PLANNING EX-OFFICIO MEMBER AND UNIVERSITY SECRETARY AND DEVELOPMENT KEY AREA OF SPECIALITY – STRATEGY AND KEY AREA OF SPECIALITY – ENTREPRENEURSHIP ORGANISATIONAL DEVELOPMENT AND MANAGEMENT MEMBER OF THE BOARD SINCE – 2016 MEMBER OF THE COUNCIL SINCE OCTOBER 2018

Dr. Mungai is the DVC Planning and Development at Prior to his appointment as the University Secretary Strathmore University. Previously, he has been the in September 2016, Mr. Kahindi was the Executive Associate Dean (Research and Innovation) and a Director, Finance, Strathmore University and Senior Lecturer at Strathmore University Business Strathmore University Business School’s Director of School (SBS). He has been the Academic Director Support and Administration. of both the Owner Manager Program (OMP) and the PhD in Business and Management at SBS. He He holds a Master of Commerce and Bachelor is a mediator at the Strathmore Dispute Resolution of Commerce from Strathmore University and is Center and is an active student mentor. a Certified Public Accountant of Kenya. He has attended the Senior Leadership Programme, Previously, Dr. Mungai was the Dean of SBS from Balance Score Card Bootcamp and The Master 2008 to 2012. He has also been a visiting faculty at Negotiator Executive Programmes at Strathmore Sauder School of Business, Canada. University Business School.

He has served in various boards and committees. He is a committee member of the European Foundation for Management Development (EFMD), Deans Across Frontiers (EDAF) and a board member of Strathmore Dispute Resolution Centre (SDRC), Kenya. He was the board chair of the Association of African Business Schools (AABS) in 2016 – 2017 and has been a board member of AABS since 2012. He has also served as a board member of the Youth Enterprise Development Fund from 2010 to 2012.

He holds a PhD in Management from IESE Business School, Spain, a Master of Science in Mathematics, a Postgraduate Diploma in Computer Science and a Bachelor of Science in Mathematics all from the University of Nairobi.

36 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 CORPORATE STRUCTURE OF THE UNIVERSITY

UNIVERSITY COUNCIL

VICE Chief Int. Audit CHANCELLOR & Compliance Ocer

Executive Manager

DVC Director Director DVC University Academic DVC Communication Legal & Planning & Secretary & Student Research & University Governance Development A airs Relations Services

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 37 WHO LEADS US

MANAGEMENT BOARD

PROF. JOHN ODHIAMBO DR. VINCENT OGUTU DR. EDWARD MUNGAI VICE CHANCELLOR VICE CHANCELLOR DEPUTY VICE CHANCELLOR DESIGNATE (PLANNING & DEVELOPMENT)

DR. ELIZABETH GACHENGA PROF. IZAEL PEREIRA MR. ANTHONY KAHINDI DVC (ACADEMIC AND DA SILVA UNIVERSITY SECRETARY STUDENT AFFAIRS) DVC (RESEARCH AND INNOVATION)

MRS. BETTY NGALA MR. VINCENT NDOLOKA MS. DORINA TELAIDE DIRECTOR, COMMUNICATIONS EXECUTIVE DIRECTOR, EXECUTIVE DIRECTOR, AND UNIVERSITY RELATIONS FINANCE ADMINISTRATION SERVICES

38 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 HEADS OF SCHOOLS

DR. LUIS G. FRANCESCHI DR. GEORGE N. NJENGA MR. FERDINAND OTHIENO DEAN, STRATHMORE EXECUTIVE DEAN, STRATHMORE DEAN, STRATHMORE LAW SCHOOL UNIVERSITY BUSINESS SCHOOL INSTITUTE OF MATHEMATICAL SCIENCES

PROF. CHRISTINE DR. DAVID CHIAWO DR. JOSEPH ORERO GICHURE DEAN, SCHOOL OF TOURISM DEAN, FACULTY OF DEAN, SCHOOL OF HUMAN- AND HOSPITALITY INFORMATION TECHNOLOGY ITIES AND SOCIAL SCIENCES

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 39 Sector overview The Africa Development Bank (AfDB)-2018 Economic outlook Report states that East Africa remains the fastest-growing sub region in Africa, with an estimated growth of 5.6 percent in 2018, up from 4.9 percent in 2017. Indeed, Kenya has the potential to be one of Africa’s success stories from its growing youthful population, a dynamic private sector, highly skilled workforce, improved infrastructure, a new constitution, and its pivotal role in East Africa. Addressing the challenges of poverty, inequality, governance, the skills gap between market requirements and the education curriculum, climate change, low investment and low firm productivity to achieve sustained growth rates that will transform lives of ordinary citizens, will be a major goal for Kenya. Similarly, the World Bank 2018 Outlook reported that Kenya is on track to attain some Sustainable Development Goals (SDGs); targets such as reduced child mortality, near universal primary school enrolment, and narrowed gender gaps in education are some of the positive accomplishments of the current government.

With specific focus on the higher education sector, we have continued to experience disruptions occasioned by the government’s focus on competency based education at the middle level STATEMENT FROM tertiary education. The number of students qualifying for university education after the 2017 Kenya THE CHAIRPERSON Certificate of Secondary Education were only 70,073, a reduction of 21.2% from the previous year. These OF THE UNIVERSITY KCSE results caused a significant reduction in the pool of potential students for Strathmore University COUNCIL among other public and private universities. Nevertheless, the University was able to attain its student enrolment targets in the year under review, thanks to the concerted efforts of many teams. Introduction It gives me great pleasure to present this report Strathmore Institute of Management and to our various stakeholders. Universities are Technology launched institutions that serve to educate the citizens in In Kenya, general education and specifically the social, cultural, and economic aspects. Universities curriculum that learners interact with, will play a ask the big questions, and through them, push the major role in helping the country achieve its Vision limits of human understanding and knowledge. 2030 goals. The on-going curriculum reforms provide As I reflect on the 2018 Annual Report in light of an excellent opportunity to align the education these underlying responsibilities of our university, sector to the SDGs, although many parents are I am glad to see so many of these big questions apprehensive about the new Competency Based answered by the diverse initiatives at Strathmore Curriculum (CBC) because they are not sure of what University, with the subsequent outcomes is changing and how this will affect them and their advancing each of the 6 capitals of integrated children. In the year under review, the Education reporting in alignment with our strategic pillars. Ministry proceeded with its on-going plans for implementation of the CBC, with the training of 181 We acknowledge the progress and strides made by master trainers, the training of 1,165 regular teachers Strathmore University largely due to our dedicated and special needs education curriculum support staff, students, parents, donors, sponsors and officers and 1,320 CBC champions as the trainer of collaborators for their continued commitment and trainers. Evidently, the move towards acquisition support of the Strathmore brand. This support of competencies and skills in education is taking propels the institution forward as we endeavor shape. For Strathmore, the approval by the University to attain the objectives laid out in the 2015-2025 Council in the previous year for the establishment of Strategic Plan, now moving towards its mid-term Strathmore Institute of Management & Technology review. In this report, we will highlight a few of the to ensure alignment with the new curriculum also achievements attained in the year under review. made progress. This Institute seeks to align with all the statutory requirements of Technical, Vocational Education Training Authority (TVETA). In this regard, The University Council was glad that the official

40 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 launch of the Strathmore Institute of Management Thanks to the improved financial performance, & Technology (SI) took place in September 2018. the University was able to extend its scholarship We noted with pride that its operations have program to 181 students; an increase from 162 commenced with ease with successful student students who had benefitted from the various intakes in several diploma and professional courses scholarship opportunities in the previous year. This already offered at the Institute. reflected positively on the social and relationship capital particularly targeting service to society pillar of the University Strategy. It is our hope that Research and Innovation as driver of the the efforts in fundraising through the Strathmore economy University Foundation (SUF), that we will be able to The impact of university education in upskilling reach many needy students. intellectual capital is significant for any economy. Furthermore, research improves the lecturer’s As a University, we continue to explore other research based-knowledge and enhances student sources of revenues to avoid being over-reliant on experience; students start off as consumers of student fees. One of the key areas we are venturing knowledge and move towards being knowledge into is consultancies. In this regard, the University producers as they undertake the mandatory Council approved new strategic hires including the research projects for all academic programmes. CEO of Strathmore Research & Consultancy Centre To name but a few of the research areas that the (SRCC). We believe that this will also provide new University is engaged are: Energy, Information avenues for additional tangible and non-tangible Technology, Entrepreneurship, Health Care resources. Management, Mathematical Sciences and the Extractives Sector. Governance Changes In the year under review, Strathmore’s efforts in We did not have any significant changes in the top research, innovation and enterprise continued to governing body of the University, ie The University be felt at undergraduate and graduate levels and Council. I find it necessary however to mention we saw an increase of 26% in research income in that as stipulated in our University Statutes in the year as compared to 2017. The robust research the last year of the term of the Vice Chancellor, a outputs increased significantly propelled by the suitable candidate should be sought. In early 2017, a Strathmore Doctoral Academy, which currently has Search Committee was appointed by the University 3 74 staff members enrolled for their PhD studies . Council with a mandate to search for a suitable VC. There were at least 102 active researchers and this This Committee conducted an exhaustive search led to a 27% increase in the number of research and rigorous selection process among extremely publications, while the inaugural University talented, diverse and experienced candidates. Research Conference had more than 150 research At the conclusion of that process, the University papers from staff members, key industry players, Council re-appointed Prof. John Odhiambo for research partners and notably, 46 undergraduate his final term as Vice-Chancellor and at the same 4 presentations . time approved the position of a Vice-Chancellor As a Council, we continue to challenge the Research Designate, to strategically ensure a smooth and Innovation Division to steer the research transition in the roles and responsibilities of the agenda, confident that its impact will benefit the office of Vice-Chancellor. During the next three individuals, the University and country as a whole. years, the Vice-Chancellor and the Designate will work closely on all matters pertaining to the office of the Vice-Chancellor. Financial performance and indicators The higher education landscape is shifting significantly and among the factors that ensure Future Outlook stability, financial capital remains key. The impact The rapid pace of life at the University reflects the of the reduced government support for institutions challenge we all face of keeping Strathmore as a of higher learning has seen universities struggling preferred university of choice for many in the region with recurrent expenditure and expansion projects. and beyond. Every year brings new challenges, we For private institutions such as ours, this calls must now focus on the future to sustain excellence for prudent financial management practices for and maintain our current position. Looking ahead sustainability and stability. In the year under review, we will continue to build on our connections and the financial position of the University improved partnerships across teaching, research, innovation, significantly as compared to 2017. The total asset5 enterprise, sports and student experience, to grow grew by 20.7% as compared to the previous year, our capacity and influence and firmly establish our while the asset turnover ratio grew steadily reaching place in the world. 58%. The improved financial performance was as a result of meeting the undergraduate student numbers after concerted efforts from all teams. While the surplus position improved by over 100%, the expenses to cater for student experience and for staff costs also grew proportionately; this is one of the areas for improvement.

3 Refer to Business Model on page 15 4 Refer to Research Report on page 67 5 Refer to Financial Statements on page 119 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 41 People First The University recognizes that people are our most important resource in sustaining excellence in teaching, research and service. This informed the establishment of the Doctoral Academy currently in its second year of implementation. While the fruits will be seen in a few years, the academy will provide both the University and the country a pipeline of seasoned academics with different research strengths to serve both in academics as well as providing solutions to propel the country’s Big 4 agenda, Vision 2030 and Sustainable Development Goal 4 to ensure equitable and quality education and promote life-long learning opportunities for all. So far, a total of 74 doctoral candidates are in various academic institutions globally fully funded by the University at a total cost of 6,925,000 million shillings.

We also launched the Leadership Academy in late 2018 aimed at creating the kind of culture that keeps the University focused on its values. This was informed by a culture audit in the previous year that assessed the current culture of the University from an internal stakeholder’s point of view. The Leadership Academy’s objectives are to create an avenue to consistently share the values of the University; outline what is expected of a leader within Strathmore University; share best STATEMENT practices that have worked in other admirable organizations; mould leaders who are able to FROM THE VICE leverage on relationships for the achievement of the University’s goals; improve the ownership and CHANCELLOR accountability of leaders towards their teams’ needs and performances and increase the levels of motivation and inspiration in our leaders. Currently, 64 administrative and academic staff are part of a one-year course by the leadership academy. We are almost halfway in implementing our ten- year strategic plan and the University Council and Aligned to SDG 86 which promotes sustained, Management Board continue to thank the entire inclusive and sustainable economic growth, full University community for its continued relentless and productive employment and decent work for hard work, resilience and dedication to our all, we continue to provide our staff with various vision, mission and values. The gains experienced opportunities for trainings with and without the over the year have ensured we continue to offer University. 87 staff received funded training in transformative student experience, make strides in professional, diploma, undergraduate and master research and innovation and commit to serving our studies to enable every staff member make society. We are committed to providing a world- maximum contribution to their department and class education at the heart of Nairobi. attain personal career satisfaction.

We continue to ensure we align ourselves with the Our students Sustainable Development Goals 1: No Poverty 4: Quality Education 7: Affordable and Clean Energy 2018 saw Strathmore University grow by 5.7 percent 8: Decent Work and Economic Growth 9: Industry, from the previous year with an increase of 9.4% in Innovation and Infrastructure and 17: Partnerships the number of female students and 2.9 % of male for the Goals students respectively. Our average minimum grade entry remains constant at B- despite the changing landscape in the education sector. We continue to ensure that we provide all our students with a competitive space by ensuring that we continue to admit the top tier students in the region. Our international student footprint continues to grow currently standing at 5.2% of the student population and representing 35 nationalities. We also celebrated the graduation of 1021 students: 811 Bachelor degree, 206 Master’s degree and 4 Doctoral degree. It was also the year

6 Refer to Strategic Review on page 11 42 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 that Strathmore Law School recorded the best We continued to champion entrepreneurship in performance in the November Bar examinations the country and in 2018 we hosted the Presidential that were administered by the Council of Legal Small to Medium Enterprises (SMEs) round Education. table to discuss cross cutting issues consistently affecting SMEs across value chains. The value We also commemorated one of our stellar student chains discussed were: aquaculture & fisheries, Cindy Wakio who graduated posthumously with an agro processing, livestock (beef, dairy and leather, LLB. A statue was mounted at the Microsoft Policy textiles and apparel, trade and construction Innovation Centre, at Sir Thomas More Building materials (wood and metal work). The two day to remember her contribution to the University conference culminated with representatives in the community and her silent but stellar achievements different sectors making a short presentation to H.E as a Strathmore Law student. Uhuru Kenyatta and senior government officials on their recommendations. We also hosted the Kenya- While we did not launch any programme in the year UK business forum where the British Prime Minister, in review, we continued to improve our existing Theresa May and H.E Uhuru Kenyatta were present. programmes through curriculum reviews in different faculties to ensure we continue to offer courses that are in line with global trends and can offer solutions Awards and Successes to the country’s Big 4 agenda, Vision 2030 and the • The Center for Intellectual Property (CIPIT) won a global SDGs. grant of Kshs 50 million employing 15 researchers and graduate fellows to research on data protection, artificial intelligence, the future of law Strategic Alliances and intellectual property. At Strathmore University, the rate of internationalization is growing rapidly with a • The Master of Public Policy Management (MPPM) growing appetite by international institutions to entered an MOU with the Northern Illinois foster relationships and collaborations with us. We University in the USA where Strathmore University understand the value and it is this that informed students get an opportunity for a Double Degree the establishment of the partnerships office in option. 2018. We will continue to invest in our partnerships while ensuring that all our alliances share our ethos, • Strathmore Institute for Public Policy and values and a shared purpose so as to advance our Governance (SIPPG), has gained the prestigious goals and objectives and achieve greater outcomes. Association of Schools of Public Affairs and Administration (NASPAA) membership. NASPAA In the year in review, Strathmore Law School signed is the largest accrediting body for public policy a Memorandum of Understanding (MOU) with courses in the USA. Anjawarlla Khanna a leading corporate law firm in Africa. This partnership allows for long-term • Strathmore University became part of the Open collaboration between the practice of law and Power Program aimed at providing Master of academia and promotes excellent legal services Science and PHD student’s in-depth disciplinary in Africa. This partnership also attracted a Kshs. knowledge in the electricity sector. 15 million donation for a new law school library which was completed in June 2019. Strathmore • Rebecca Eyanae, George Kagwe and Guguni Law School signed another 10 MOUs, five of which Nyabade all Strathmore University alumni were were with the biggest law firms in Europe and US. part of the KTH Global Development Hub in They also signed inter-university MOU’s with Beijing Sweden. They presented their projects whose goal Foreign Studies University, University of Leiden, was to educate and activate the local population University of Groningen and Nirma University. It is to protect and conserve water. this kind of collaborations that allow our students an opportunity to rub shoulders with the world’s While this is a snippet of the vibrant year that 2018 best in their journey to be the best. was, we do not take it for granted the continued support by all our stakeholders in all areas of Strathmore University Business School also education. We thank the parents and guardians that collaborated with Yale University to enhance continue to believe in the value of a world-class students’ exchange programme experience across education, our faculty who tirelessly continue to the two academic institutions. This was facilitated give their best to the students, our support staff by the common membership of the two institutions who are our back bone and my colleagues at the to the Global Network of Advanced Management Management Board who continue to provide the a platform for innovation in business education. vision and direction for the entire University. Member schools connect and collaboratively develop programmes to enable students and aspiring global business leaders, to practice working globally while tapping into the unprecedented resources that include expertise, relationships, and access to data—offered by 32 business schools in 29 countries, in 6 continents.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 43 CORPORATE GOVERNANCE REPORT

Strathmore University is a body corporate duly Name Industry experience incorporated under the Universities Act (CAP210B of the Laws of Kenya). It was granted a charter Mrs. Bernadette Marketing, Cooperative on 23rd June 2008. The University is owned Musundi Management, Gender reforms, by Strathmore Educational Trust, Nairobi, in Public Service collaboration with Kianda Foundation Educational Dr. Caesar Strategic Management, Change Trust, Nairobi. Both trusts are not-for-profit Mwangi management, Corporate body corporates with (perpetual succession) Governance, Accountant, Act (Chapter 164 of the Revised Laws of Kenya Financial Services, Renewable 1962 edition). The trusts were formed for the Energy. advancement of education and the alleviation of Prof. John Mathematics, Academia, poverty. Odhiambo Education Management Mr. Fernando Architecture, Project Aizpun Management The University Council Dr. Susan Kibue Architecture, Academia, The University Council presided by a Chairperson is Teaching, Management, a body established to govern the University and to Leadership assist in promoting its foundational and educational Prof. Timothy ICT and Development aims. The membership of the council includes: Wamae Authorship Mr. David Owino Financial Services, Investment, • Two persons appointed by the Board of Trustees Transitional Leadership from among its members • Two persons nominated by Kianda Foundation Ms. Margaret Pension Management, Law Osure • Two senior academicians, appointed by the Board of Trustees with experience in higher Mrs. Christine People Development education and neither of whom shall be an Ochieng employee of the University Ex-officio members • Two persons appointed by the Board of Dr. Vincent Organisational Development, Trustees, from public and private sectors in Ogutu Social Entrepreneurship, Kenya Psychology • The Vice-Chancellor, who shall be the Secretary Dr. Elizabeth Environmental Law, Customary to the Council Gachenga Law Systems, Governance • The Deputy Vice-Chancellors and the University Prof. Izael Renewable Energy, Power Secretary shall be ex-officio members but will Pereira Da Silva Systems Engineering, Energy not have voting rights at Council meetings. Conservation. Mr. Anthony Financial Strategy, Kahindi Organisational Development The Chairperson and Vice-Chairperson of the Dr. Edward Entrepreneurship, Management Council are appointed by the Council itself through Mungai secret ballot from among the two members of the Strathmore Educational Trust and two members nominated by Kianda Foundation sitting in the The Members of the University Council are Council. The age limit for the University Council appointed as follows: Members is 75 years. • Nominations for membership to the Council are reviewed by the Nominations Committee set up Our Council’s Composition by the Board of Trustees for the purpose. The University Council has 4 women and 5 men. • Selected candidates are recommended Their skill set includes the fields of Architecture, to the Board of Trustees for approval and Energy, Finance, Humanities, Risk Management, appointment. Law, Marketing, Mathematics, ICT and Strategy. • The Chair of the Board of Trustees informs the The Deputy Vice-Chancellors and the University Vice Chancellor of the members appointed to Secretary sit as ex-officio members but do not have the Council. voting rights at Council meetings. The University keeps the University Council composition under review to ensure it has all the necessary skill-set relevant to the University’s foundational principles. In the year under review we saw some changes among the board members.

44 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 We welcomed Dr. Mungai as the new DVC -Planning Conflict of Interest and Policy & Disclosures and Development; after the appointment of Dr. Strathmore University is committed to the Ogutu as the Vice Chancellor Designate, who highest standards of transparency, probity and will succeed Prof. Odhiambo upon the end of his accountability. It seeks to conduct its affairs in a last term as Vice Chancellor. Dr. Mungai will sit responsible manner considering the requirements on the Fundraising and External Relations Policy of the law and the human standards fostered by the Committee and coordinate the activities of planning University. Guided by a conflict of interest policy, and development for the University. all members of the University community, from the University Council to the Management of the Board, Diversity of University Council all teaching and non-teaching staff are bound by this policy. The University strives to make the appointment processes of members to the Council as transparent Strathmore University perceives conflict of interest as possible taking into account what is stipulated by to be wherever there is personal, professional, the Statutes of Strathmore University, while at the and commercial or financial interests of activities same time taking into consideration the diversity of outside of the University, which have the possibility members’ expertise. Strathmore University strives to either in actuality or appearance of: have a diverse Council, considering ethnicity, gender balance, age, and a balance of management skills. a) Compromising staff member’s judgement 40% 60% • Biasing the nature or direction of decision FEMALE MALE making • Influencing a staff member’s decision or behavior with regard to University matters such as appointments, promotions, use of University Our Council’s Leadership resources, interactions with human subjects or other matters of interest to the University The University Council oversees providing strategic direction and oversight management of the • Resulting in a personal or family member’s or University. In addition, the Council oversees: personal associate’s gain or advancement at the expense of the University • The mission, vision and promoting the aims and objectives of the University; The University’s mission of teaching, research • The appointment and performance and public service must not be disrupted by the management of the Vice Chancellor; pressures of economic gain. The trust that the University’s stakeholders have with regard to the • Setting and monitoring broad budget and planning framework; University’s integrity must not be undermined by improper influence where members are expected to • Setting and critically monitoring Council policy act with honesty, integrity and in the best interest of and risk management; the University when performing their duties. • Legislative roles, including ensuring that the University is acting ethically and in conformity Our Conflict of Interest Policy encompasses with all legal requirements; Conflict of Commitment which exists when a staff • Fundraising and resource mobilization; member’s external relationships or activities have • Council performance and succession planning. the possibility (either in actuality or appearance) of interfering or competing with the University’s educational, research, or service missions, or with Continuous Professional Development for the individual’s ability or willingness to perform the Council Members full range of responsibilities associated with his or her position. Owing to the political environment in the country, the Continuous Professional Development Training for the University Council scheduled for 2017 University’s Council Programme October, was rescheduled to the following year. The The Council has four annual meetings that are training session for Council members was therefore pegged on its three strategic pillars geared towards conducted in February 2018. Teaching, Research and Innovation, and Service to Society. The Council receives regular updates from Training sessions that were held included: Induction each of the committees. The University has five session for new council members, University committees that assist in the smooth running of its Strategy Monitoring, University Culture and Human affairs. Resource Strategy. These sessions were specifically selected in order to update the Council members on the recently concluded Job Evaluation Exercise and upcoming launch of the Leadership Academy.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 45 2018 University Council’s Board Attendance The Council Committees are:

Dates of ordinary meetings • Oversight Committee • Finance Committee • Fundraising & External Relations Policy Committee • Audit & Compliance Committee Mrs. Bernadette Musundi / / / / • Human Resource Policy Committee Dr. Caesar Mwangi / / / / Prof. John Odhiambo / / / / REPORT FROM THE CHAIRPERSON Mr. Fernando Aizpun / / / / OF THE OVERSIGHT COMMITTEE Mr. David Owino X X / / Dr. Susan Kibue / / X / Prof. Timothy Waema / / / X Ms. Margaret Osure / / X / Ms. Christine Ochieng X / / / Prof. Izael Da Silva / / / / Mr. Anthony Kahindi / X X / Dr. Vincent Ogutu / / / / Dr. Elizabeth Gachenga / / / X Prof. Izael Pereira Da Silva X X / /

Key Activities in 2018 • Successful completion of strategic recruitment and appointments of the new Chief Internal Auditor, Director, Strategy & Quality Assurance, CEO of SRCC, among others. DR. SUSAN KIBUE • Approval of new policies brought to the Council CHAIRPERSON from Council Committees. • Successful completion of the search of the The mandate of the Oversight committee is to successor for the position of the Vice Chancellor oversee the implementation of the University and creation of a new position of Vice strategy, monitor and review governance and Chancellor Designate. academic policies, and to monitor key academic • Approval of the reviewed Strathmore University processes, ensuring they adhere to the University Statutes 2018 edition. mission and vision. • Successful recruitment of Deputy Vice Chancellor, Development and Planning after Dates of ordinary meetings naming the previous DVC as the VC Designate. • Initiated a register provided by the Director of Legal and Governance Services where all Council Members were requested to state and sign any potential conflicts of interest prior to Dr. Susan Kibue / / / / the commencement of every council meeting. Mrs. Bernadette Musundi / / / / This is important as members of the Council are required to refrain from contributing to or Prof. John Odhiambo / / / / voting on matters where they have such conflict. Prof. Izael Pereira Da Silva / / x / Dr. Elizabeth Gachenga x / / / Committees of the University Council Dr. Vincent Ogutu / / / / The University Council works through committees. Mr. Anthony Kahindi / X / X There are five committees that assist in executing Mr. Paschal Manyuru / / / / the mandate of the Council. Council Committee Prof. Timothy Waema / / / X meetings are held every quarter, and their reports are thereafter discussed at the University Council Dr. Edward Mungai X X X / meetings. *Dr. Edward was appointed to the Council in October 2018 and therefore only attended the last quarter Oversight Committee Meeting of 2018.

46 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Key achievements of the Committee in 2018 Dates of ordinary meetings • Approved the recruitment of the Director, Strategy and Quality Assurance and its support offices to be under the office Deputy Vice Chancellor Planning and Development. • Approved the restructuring of Sir Thomas More (STM) Building in order to accommodate the Mr. David Owino (Chairperson) / / / X Anjarwallah & Khanna Library donation for the Prof. John Odhiambo / / / / Law School Library. This would ensure that Dr. Caesar Mwangi / / / / the library relocated to the 6th floor of STM Building. Mr. Vitalis Ojode / / / / • Approved the new organisational structure of Mr. Anthony Kahindi / / / / the Academic and Research Divisions upon the Mr. Vincent Ndoloka / / / / completion of the Job Evaluation Exercise. Prof. Timothy Waema X / X / • Adopted and approved all reports from Deputy Vice Chancellor Academic and Student Affairs reports and forwarded them to the University Council. Key activities of the Committee • Adopted and approved all reports from Deputy in 2018 Vice Chancellor Research and Innovation and • Approved the Audited Financial Statements forwarded them to the University Council. and Management Letter from the external Audit • Approved the Intellectual Property Policy 2018. team from Deloitte. • Approved the final SBS/SMC Integration Report • Approved and adopted the 2019 institutional upon completion of the integration process. budgets which were aligned to three pillars of the University Strategy focusing on Strategy, Sustainability and Student Experience. • Approval of changes of the BOT model for REPORT FROM THE CHAIRPERSON the Student hostel between the University OF THE FINANCE COMMITTEE and Quest Works, after new environmental regulations came into effect. • Approval and selection of a special Committee of Council and Management Board to be in charge of expansion plans as part of development for the University. • Follow up on issues raised in the Management Letter that was part of the Audited Financial Statements. • Approval of new organisational structure as stipulated in the completed Job Evaluation Exercise for the Finance Department.

MR. DAVID OWINO CHAIRPERSON

The finance committee oversees the preparation and annual review of the five-year rolling budgets of Strathmore University. The committee also reviews the financial strategy and deals with strategic issues concerning financial risk management. The committee also receives and considers the annual external audit reports submitted by external auditors, reviews the University financial regulations and investment policy and oversees the University’s financial management and financial control systems.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 47 REPORT FROM THE CHAIRPERSON Key Achievements of the Committee in 2018 FUNDRAISING POLICY COMMITTEE • Facilitated the registration of the Strathmore University Foundation with the Kenya Revenue Authority. • Approved the new organisational structure for the Communications Department as stipulated in the Job Evaluation Exercise. • Established an endowment fund with a principal amount from the European Union which earned interest in the year in review. • Successful registration of the Strathmore University Alumni Association • Approved several new policies among them Protocol & Publishing procedures and submitted them to the University Council for approval. • Approval and adoption of SUF reports for presentation at the University Council meetings • Approval and adoption of the Communications & External Relations reports for presentation at the University Council Meetings. MS. MARGARET OSURE CHAIRPERSON

The fundraising and external relations committee REPORT FROM THE CHAIRPERSON reviews and monitors the effectiveness of the OF THE AUDIT AND COMPLIANCE University’s fundraising strategies and policies, COMMITTEE while providing leadership and strategic guidance to identify individual donors and organisations to solicit funds. The committee also monitors and reviews the University’s communication policies and strategies about managing its relationships with external stakeholders, enhancing the corporate image of the University and attaining a distinguished positioning in the higher education market both local and internationally. The University’s community engagement policies and strategies and the effectiveness of the Community Outreach Programme, are reviewed and monitored by this committee.

Dates of ordinary meetings

DR. CAESAR MWANGI CHAIRPERSON Ms. Margaret Osure (Chairperson) / / / / Mrs. Bernadette Musundi / / / / The role of the audit and compliance committee is to provide leadership and advice to the Prof. John Odhiambo / / / X University Council on strategic issues related to risk Dr. Vincent Ogutu / / / / management, quality assurance and compliance. Dr. Edward Mungai X X X / The committee reviews and monitors the effectiveness of the University’s risk management Mrs. Betty Ngala / / / / policies and strategies in mitigating against Fernando Aizpun X / / / potential risks and improving management and Prof. Izael Da Silva X / / / control. Mr. Anthony Kahindi / / /

48 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Dates of ordinary meetings REPORT FROM THE CHAIRPERSON OF THE HUMAN RESOURCE POLICY COMMITTEE

Dr. Caesar Mwangi / / / / (Chairperson) Prof. John Odhiambo / / / X Mrs. Bernadette Musundi / / / / Mr. Anthony Kahindi / / X / Mr. James Nyiha / X X X Dr. Vincent Ogutu / / / / Ms. Dorina Telaide / X / / Mr. Kizito Nasumba X X / / MRS. BERNEDETTE MUSUNDI *The new Chief Internal Auditor, joined the institution in May 2018. The role of the Human Resource Policy Committee is to oversee the formulation and subsequent Key activities of the Committee monitoring and review of policies and strategies on in 2018 employment of all University staff, including policies • Successful recruitment of a new Chief Internal on recruitment and selection, staff development and Auditor. training, performance management, schemes and salaries and other conditions of service. • Approval of the audit reports and presentation of these reports to the University Council. The Committee is also responsible for; reviewing • Adoption of the framework for Risk Assessment and monitoring the implementation and as follows: effectiveness of the University’s employment • COSO – Committee of Sponsoring policies; overseeing the relations between the Organisational Framework University and its employees; reviewing and making • IPP F – International Professional Practices recommendations to the University Council on the Framework salaries and other terms and conditions of service; • ISO 31000:2009 Standard on risk monitoring key performance indicators; receiving management and considering proposals on strategy and policy in all matters relating to the recruitment, reward, • Identified high and medium institutional risks retention, motivation and development of the that could affect the University negatively. University’s staff, and making recommendations to • Approved the 2018 Audit plan to cover four the University Council; receiving reports from the areas: Cafeteria (Student Centre and Snack Management Board relating to promotion, regarding Bar), Compliance process in DVC ASA division, the award of additional salary increments and Human Resource processes and Examination contribution payments to salaried staff; receiving Processes. reports from the Management Board on all honorary titles and personal titles awarded; receiving and considering reports, at least annually, from the Management Board concerning the terms and conditions of service of employees of the University and making recommendations to the University Council.

Dates of ordinary meetings

Mrs. Bernadette Musundi / / / / Prof. John Odhiambo / / X / Mrs. Christine Ochieng / / X / Mr. Fernando Aizpun X / / / Mr. Anthony Kahindi / / / / Mrs. Anne Makomu Njuguna / / / X

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 49 Key activities in 2018 • Adoption and approval of the Human Resource Policy reports for presentation at the University Council. • Approval of the launch of the Strathmore Leadership Academy. • Finalization of the Job Evaluation exercise and the final reports with organizational structure approved by the University Council. • Approval of the 10% increase of Medical benefits for staff to be implemented in 2019. • Successfully launched a succession planning framework that will cut across all levels in the University. • Approval of the new employee relations strategy to be executed by the Staff Welfare Committee of the Management Board. • Approval of the revamped Staff Handbook Policy.

Approved the following new strategic appointments

-- DVC, Planning and Development -- Dean, School of Tourism and Hospitality -- Director, Internal Audit -- Director, Strategy and Quality Assurance -- Head, Engineering Programmes -- Executive Dean, Strathmore University Business School -- Deputy Executive Dean, Strathmore University Business School -- Management Committee (MC) Members in all Academic Units -- Managing Director, Strathmore Research & Consultancy Centre

50 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 51 06 RISK MANAGEMENT REPORT We continuously monitor high-risk areas and (c) Provide independent assurance that risk implement a programme of activities to mitigate processes are fit for their purpose and that they risks and cushion their impact. are being carried out as intended (Third Line of Defence). RISK MANAGEMENT FRAMEWORK Three line defence Effective risk management and control are essential pillars for the sustainable growth of the University. The role of risk management is to evaluate, LINE respond to, and monitor risks in the execution of LINE LINE RD our strategy. Risk is a part of institutional growth; ND ST therefore an effective Enterprise Risk Management 1 2 3 Framework (ERMF) is put in place to support the University growth plan. Strathmore University’s approach to managing risk is outlined in the ERMF, which creates the context for setting policies and standards and establishing the right practices throughout the University. The ERMF defines the risk management process and sets out the activities, tools, techniques and organizational arrangements 1 2 3 to ensure that material risks are optimally identified and managed. Own Provide Provide and take independent risk independent The Internal Audit, Risk and Compliance Risk risk, and management assurance that Management Department coordinates a risk implement activity and risk processes are management framework within the University. controls support controls fit for purpose However, responsibility for managing risks lies with Management. Management has constituted the Executive Internal Audit and Risk Committee, which assists the Internal Audit and Risk Management In establishing strong lines of defence, we seek Department in reviewing and assessing the potential to formalize the concept of independence and risks assumed by the University and confirms that challenge, whilst promoting collaboration and the they are in alignment with the University’s mission flow of information between Departments in the and objectives. In addition, the Committee ensures University. Enterprise Risk Management Framework that the necessary mitigation strategies are in is articulated periodically and the University place, resourced appropriately and integrated Council has defined how much risk departments with existing initiatives to enhance management are permitted to take through a formal risk appetite and control. Membership to this committee is statement and formal scenario and stress testing by select members of senior management. The framework. Committee also ensures that there are departmental Risk Champions whose role is to coordinate risk management activities, enhance risk sensitization Risk appetite statement by acting as the contact point for employees on The Risk Appetite Statement is a key component risk-related issues and assist in the smooth rollout of of the University management of risk and it is enterprise-wide risk management in their respective embedded as part of the strategic planning process. departments. The risk appetite statement describes and measures the amount and types of risk that the University The risk champions are trained in the role they play is prepared to take in executing its strategy. The in the risk management process. The risk champions University risk appetite framework combines a top- are required to carry out a risk assessment for their down view of the capacity to take the risk with a respective departments, and continuously monitor bottom-up view of the risk profile associated with and review the treatment of these risks. each departmental area’s plans.

The backbone of the University Enterprise Risk The University Council, following the Management Framework is the “three lines of recommendations from the University Council defence” concept. The Three Lines of Defence Audit and Compliance Committee, having reviewed operating model, which has been defined in the the critical and major risks facing the University, ERMF, enables the appropriate assignment of risk approved the University’s risk appetite. management activities between those parties that:

(a) Own and take the risk, and implement controls Risk assessment (First Line of Defence); The risk framework has additionally built a risk assessment structure into our planning process (b) Oversee and challenge the first line, providing at every level of management, which ensures independent risk management activity and all assumptions or unknowns are captured from support controls (Second Line of Defence); and the start of every project and in all processes and monitored every month. To support the

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 53 achievement of these objectives the risk existing management processes to ensure that department has put in place a robust monitoring continuity strategies and plans remain relevant. The and reporting mechanism around key financial and University’s business continuity capabilities are operational risks that enables each department evaluated by testing business continuity plans and to be more responsive and agile in the face of conducting crisis simulations. uncertainty and volatility.

Risk appetite key indicators Risk responsibility organogram and triggers The University manages its risk profile in a forward- looking manner through a trigger and management action framework. Key indicators and triggers have UNIVERSITY been developed to serve as an early-warning system COUNCIL in the event of deteriorating circumstances. The indicators and triggers have been implemented at the departmental level, and are routinely monitored by management and reported to the Board Risk VICE Committees on a quarterly basis. CHANCELLOR

Scenario Planning and Stress Testing Scenario Planning and Stress Testing are key elements of the University’s integrated planning process. With stress testing and scenario analysis, the University is able DIRECTOR to assess the performance of the various indicators INTERNAL in the expected economic environment and evaluate AUDIT & the impact of adverse economic conditions. COMPLIANCE

All the above elements of the Enterprise Risk Management Framework are designed to enable each department to become more responsive and agile in the face of uncertainty and volatility. INTERNAL RISK & CHIEF COMPLIANCE AUDITOR MANAGER Business continuity management The University’s ability to protect life, assets, and resources, and ensure continued services to its stakeholders in the event of disruption is critical to INSTANT AUDIT its sustained financial success. Business continuity ASSISTANT management (BCM) is a process that identifies potential operational disruptions and provides a basis for planning for the mitigation of the negative impact of such disruptions.

Business continuity management: The institutional risks that the University was 4 step process dealing with in the year 2018. The institutional risks the University dealt with in the year 2018 were categorized into four main risk categories:

• Strategic • Compliance • Financial • Operational

The University continuously monitors risks across IDENTIFY ASSESS & MONITOR & PLAN & the University in order to implement effective RISK EVALUATE CONTROL MITIGATE RISK ACTION working controls for the risks identified. PLAN

In addition, it promotes operational resilience and ensures an effective response that safeguards the interests of the University and its stakeholders. Contingency and recovery plans for core services, key systems and priority departmental activities have been developed and are revisited as part of

54 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 In the year under review, the internal audit conducted the following audit reviews: • Student Centre Cafeteria & Pate Cafeteria • Human Resource Processes • Compliance Process (DVC AA) • Examination Process

Risk register Residual score Specific risk Risk owner (out of 3) Failure to achieve the 2025 strategic plan due to lack Deputy Vice-Chancellor of funding, inadequate implementation, monitoring and Planning, Management 3 evaluation Board Drill related claims due to the statute limitations that gives a 3-year window period for anyone to file suits against the Management Board 2 University Increased cybercrimes that compromise the University Director of Information documents due to weak passwords, lack of firewalls, misuse 3 Technology or lack of assessing user rights Slow response to social media inquiries leads Director, University Relations 2 to negative feedback and Communications Deputy Vice-Chancellor Drop in International University rankings Academic and Student 2 Affairs Off-campus negative student activities such as substance Mentoring and Dean of 2 abuse Students Deputy Vice-Chancellor Uncoordinated research due to unapproved research centres 2 Research Deputy Vice-Chancellor Inability to attract and retain quality staff due to low supply of Academic and Student 3 PhDs Affairs, Deans and Director, Human Resource Inability to attain the minimum number of target Students Management Board 2

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 55 07 SUSTAINABILITY REPORT Sustainability is at the heart of Strathmore In the year under review, the gender ratio was as University’s strategy, and it continues to inform our follows. activities if we are to maintain our reputation as pioneers and innovators in higher education and Male Staff Female Staff other applicable areas. 591 601 Total Staff With the 2030 Agenda for Sustainable Development, global leaders etched out an Male Female 1192 ambitious path to end poverty, fight inequality and injustice, and protect the planet. Kenya, being a 50% 50% member state of the United Nations, agreed upon the 17 Sustainable Development Goals (SDGs), Job Category therefore making them a national agenda. At Strathmore, we are commited to contributing to the Strathmore University’s growth has necessitated success of the SDGs by sustainably utilising all our an expansion of faculty and administration which available capitals. has accompanied an increase in regulatory requirements, compliance, assessment demands In 2018, Strathmore University’s careful stewardship and student and parent expectations for high-value of our capitals saw the University benefit in the education. Therefore, the ratio of administration following major areas: staff to the academic staff of 2:3 represents the acknowledgement of administrative requirements needed to support the faculty in their role as the Human Capital custodians of students’ education. People are the foundation of our success and the quality of our academics, research, professional and Administrative Academic support staff is critical to our strategy. 712 480 a) Our Human & Intellectual Capital Our human capital requires high levels of Staff diversity by Nationality maintenance due to its central position within We recognise the importance of diversity among Strathmore University’s business structure. our staff and we are actively working to increase the According to the human capital index of 2018, pool of international employees. In this regard, the Kenya’s ranking dropped significantly from its following represents our international diversity in previous year’s rank. Despite this, Strathmore the year under review. University holds firm to its stand on human capital maintenance and development as a pivotal aspect Nationality No. Nationality No. of our business model’s structure. Argentinean 2 Kenyan 1152 Austrian 1 Mozambican 1 Our mandate as a university is to train skilled and qualified personnel to supply the global economy’s British 1 South African 1 human capital needs. To achieve this, we take into Congolese 2 Spanish 7 consideration the general wellbeing of our internal Filipino 3 Ugandan 12 workforce. Our efforts and practices are geared Indian 1 Not Specified 8 towards maintaining high standards of working Irish 1 conditions for the University staff by exploring all opportunities and managing challenges that arise.

Foreign Kenyan The members of our University represent a diverse set of contexts; by embracing these diversities, our 3% 97% room for growth as an institution broadens. The Academic staff by nationality following represent some highlights of our diversity. Academic Staff Distribution HR Data Visualization: In line with the requirements of the Kenyan Employee Demographics universities regulator, the Commission for University Staff Summary Education (CUE), the development of staff is an integral component of Strathmore’s strategy on Gender Distribution academic staff. The Management Board launched At Strathmore, we value the contribution and the Doctoral Academy in 2017 to ensure 70% equal representation of both women and men. We of all academic staff attain a PhD by 2025. Now support gender equality as enshrined in SDG 5; this in its second year, the Doctoral Academy has 74 gender diversity informs our workplace policies doctoral candidates in various academic institutions and practices that incorporate their different needs all at different stages of their PhD studies. The and experiences. By implementing these practices, anticipated results of this will be reflected in the Strathmore University broadens its scope of staff profile in the next few years. perspectives that consequentially inform a process of gender mainstreaming within the University. STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 57 The staff profile for academic staff has continued to The policy also gives guidelines for employment improve as shown below; benefits which included a 10% increment in the staff Academic staff Full-time staff medical cover amongst the following: Female Male • Flexi-time (for mothers returning to work after maternity leave) Professor 1 5 • Medical cover Associate Professor 2 3 • Bonus Senior Lecturer 8 25 • Long-serving awards Lecturer 38 44 • Subscription to professional bodies Doctoral Fellow 32 39 • Provident fund scheme Teaching Fellow 31 38 • Group life Graduate Assistant 20 15 • Personal accident insurance Instructor 2 1 • Meal benefit worth Kshs 4,000 per month Junior Research Fellow 3 1 • Education benefits for dependents Grand total 139 175 • Nursing room for nursing mothers • Benevolent benefit Staff salary policy • Tuition waiver for the dependents of ex- employees Strathmore University’s staff policy is designed to attract, motivate and retain competent employees Growing our People who will promote the University’s mission and vision As a University, we remain committed to developing for the short, medium and long-term goals. all cadres of staff taking into consideration the fact that we must use human capital to develop intellectual capital in teaching and research. Strathmore University strongly believes in the Additionally, the operational excellence in our need to recognise excellence and effort, and the operations will translate to more efficiency for institution has an annual performance appraisal our staff and students and other stakeholders. system and budgeted annual increments for all staff. Ultimately, this helps address emerging issues, and gives the institution a competitive edge in the now Equity in staff salary allocation is what directs very competitive higher education sector. our staff salary policy to ensure employees are In the year under review, Strathmore University paid justly and treated consistently throughout spent 21% more in 2018 as compared to 2017 in staff the University. The salary policy acts as a guide training programmes. in staff emoluments such as basic salary, housing allowance, gross salary, overtime, salary advances The following Table represents the amount spent etc. The policy also provides guidelines on annual in Financial year 2018 on Staff Training in the Doctoral Academy, Leadership Academy, academic reviews, job evaluation, salary surveys and detailed programmes, professional courses, professional guidelines on the following areas: accreditation fees. • Circumstances under which an employee may be sent on compulsory leave Amount Staff training • Circumstances under which an employee’s 2017 2018 salary may be withheld Faculty 5,249,841 2,587,753 • Circumstances under which an employee may Academic 2,815,554 1,560,753 be promoted or demoted Service 4,754,147 6,419,404 • Salary review when an employee is promoted or demoted The Leadership Academy Circumstances under which employees qualify for Over the last 5 years, Strathmore University has allowances, which include: expanded its educational offerings, having launched • Responsibility allowance several new graduate programmes. To address this growth and ensure alignment of the culture of all • Acting allowance staff, Strathmore’s Management Board established • Special duty allowance the Strathmore Leadership Academy in 2018, whose mandate is developing leadership skills of • Per Diem allowance Strathmore employees through the Leadership • Telephone allowance and Excellence Acceleration Programme (LEAP). • Relocation allowance The academy will ensure that the institution develops leaders who are able to create a culture that keeps Strathmore focused on its values.

58 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 The first cohort was comprised of 64 middle insecurities that affect private, public and management staff, who were taken through various institutional information. In this regard, Strathmore modules focusing on impactful leadership and University’s robust IT infrastructure seeks to protect management skills and key competencies at all our staff and student information from unauthorised levels. access so as to ensure the privacy and security of student and staff information is maintained. Staff Welfare Committee In an effort to enhance employee participation Health and Wellness in matters relating to their welfare and working Strathmore University’s Medical Centre has been conditions, the Management Board incorporated in operation since 2010 and it serves the University a Human Resource Committee in 2018. This community and the population from the catchment committee has in turn established a Staff Welfare area . The improved and diverse special clinics Committee whose representatives are drawn from available at the Medical Centre include: Maternal all cadres. The main objective of the committee is and childcare; Dental Multi-Specialty; Sickle Cell to act as a liaison between the Human Resource Total Care Clinic; General Physiotherapy & Sport Department and the University staff by ensuring Injury and Rehabilitation Centre; Specialised continuous engagement of staff on matters Pediatrics Care; Vaccination and travel Medicine concerning them. Both past and current staff Centre; and the Non-Communicable Diseases (NCD) members provide feedback to the HRD for action Management Program have led to an increased and redress. access to outpatient services by staff, students and the catchment population. In the year under review, The committee is currently composed of 7 members there was an increased number of outpatient visits drawn from different staff departments within the from students. University.

During Quarter 1 and 2 of 2018, the committee Patient Trends of 2017 and 2018 conducted a series of engagements with staff Patient numbers across different departments. Most of the Visitor status 2017 2018 engagements took place between 4th January and 30th June 2018. The objective of the visits was to Students 5423 6,629 obtain feedback from the staff regarding issues Staff 4508 3,942 concerning their working conditions and general External clients 3653 2,549 welfare. TOTAL 13584 13,120

Safety and Security Health Research We recognise our mandate to secure the safety With the aim of eventually establishing a teaching of our students and staff as well as our physical hospital, Strathmore University’s Medical Centre has and virtual assets. The University’s growth has led expanded its scope to engage in biomedical and to an increase in population size that is within the clinical research. The existing active collaboration university premises at any given time, which has with the Centre for Research in Therapeutic increased the risk levels to the safety and security Sciences (CREATES) has facilitated several research on campus. In addition, our internationalisation projects being undertaken in the year under review. process has heightened the need to boost our security to internationally accepted standards that CREATES is a consortium of academic and assure the safety of all in Strathmore University. research institutes who share the overall objective of conducting and advancing cutting-edge and Security upgrades in 2018 included the setting up relevant research in therapeutic sciences and of a police post within campus and upgrading of medical genetics in a bid to address key health our CCTV surveillance systems to provide extensive issues related to diseases that are major public monitoring and quick response in the event of health concerns in Kenya and the East African security threats on campus. In the year under Region. review, expenditure in security increased by 6.4% over the previous year. The following research grants were awarded to CREATES within this collaborative framework with In relation to cyber security, the rapid growth of Strathmore University Medical Centre: IT innovations has led to the negative emergence of cybercrime. The Kenyan Cybercrimes Act was implemented to deal with the rising virtual

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 59 No Grant title Grant value Funder 1. HESTIA3 1746 USD Per AstraZenaca A randomised, double-blind, parallel-group, multicenter, phase Patient Pharmaceuticals III study to evaluate the effect of ticagrelor bid versus placebo Limited in reducing the number of VOCs in paediatric patients with sickle cell disease.

2. HESTIA4 500 USD Per AstraZenaca A Multi-centre, Phase I, Open-label, Single-dose Study to Patient Pharmaceuticals Investigate Pharmacokinetics (PK) of Ticagrelor in Infants Limited and Toddlers, Aged 0 to less than 24 Months, with Sickle Cell Disease 3. A Phase 3, Open-Label, Randomized, Multicenter, 1976 USD Per Daiichi Sankyo, Inc. Controlled Trial To Evaluate The Pharmacokinetics And Patient Pharmacodynamics Of Edoxaban And To Compare The Efficacy And Safety Of Edoxaban With Standard Of Care Anticoagulant Therapy In Pediatric Subjects From Birth To Less Than 18 Years Of Age With Confirmed Venous Thromboembolism (VTE) 4. A prospective study to evaluate the safety, effectiveness and 2,780,987 USD Glaxo SmithKline impact of the RTS,S/AS01E vaccine in young children in sub- Saharan Africa 5. Phase III multicenter clinical trial of a Single Dose Regimen 545,350 USD European of OZ439 (artefenomel) and Ferroquine for the treatment of Developing malaria Countries Clinical Trials Partnership 6. An epidemiology study to assess Plasmodium falciparum 565,200 USD Glaxo SmithKline parasite prevalence and malaria control measures in catchment areas of two studies pre- and post RTS, S/AS01E introduction (EPI-MAL-002 and EPI-MAL-003) to assess, in field conditions,vaccine benefit:risk in children in sub-Saharan Africa. 7. An Open Label Extension Study of GBT440 Administered 4,666 USD Per Global Therapeutics Orally to Patients with Sickle Cell Disease Who Have Patient Incorporation Participated in GBT440 Clinical Trials 8. A Randomized, Double-blind, Phase IIb Study to Investigate the 2,198 USD Per SANOFI Efficacy, Safety, Tolerability and Pharmacokinetics of a Single Patient Dose Regimen of Ferroquine (FQ) with Artefenomel (OZ439) in Adults and Children with Uncomplicated Plasmodium falciparum Malaria

9. Open-label, dose-finding, 2-parts, efficacy phase II study 26,750.00 Swiss Tropical with three formulations (racemate praziquantel commercial EURO and Public Health oral tablets, new oral disintegrating tablets of racemate Institute praziquantel and L-praziquantel) in schistosomiasis (S. mansoni) infected children aged 26 years (Part 1), followed by an assessment of efficacy and safety with the selected formulation and dosage in S. mansoni infected infants aged 3-24 months (Part 2) 10. A Randomized, Open label, Parallel-group, Single Dose 5,123 USD Per Sanofi Regimen, Phase 2a Study, to Investigate the Clinical and Patient Parasiticidal Activity and the Pharmacokinetics of 3 dose levels of Artefenomel (OZ439) given in combination with Ferroquine (FQ)and FQ alone, in African Patients with Uncomplicated Plasmodium falciparum Malaria 11. A systems Approach to Air Pollution in East Africa ASAP or 45,228.72 USD University of shaping east African cities as systems to Work Better for All Birmingham

12. Evaluation of a digital microscope for malaria- Kenya 14,998.50 USD University of Oxford

60 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Our Mental Health Strategy UNIVERSITY POWERED BY THE SUN

Mental health is now a prevalent global issue, whose Natural Capital impact is being felt in all spheres of society, more We seek to be a custodian of ecological awareness so at universities, regardless of the socio-economic and sensitivity with the aim of achieving the goal status of the student community. of sustainability. Strathmore University’s pioneering solar electricity generating system has maintained Our student body population runs the highest the capacity to not only power our University needs risk of falling prey to mental health issues as but also to support Kenya’s national grid with the surplus generated. they attempt to manage academic and societal pressures, potentially negative consequences on In the same trailblazing breath, Strathmore the wellbeing of the use of digital technologies University achieved the following milestones in the and social media, and navigate developmental year under review. challenges as they transition to adulthood. Research indicates that social media has heightened the Open Africa Power – Partnership in Education vulnerability that characterises a young adult’s towards Africa’s Clean Energy Future social interactions. Africa’s clean energy future is gaining momentum as electricity access is accelerating and increasingly At the Strathmore University Medical Centre, coming from renewable sources. However, in 2016, a dedicated clinical psychologist is available to an overwhelming 48% of the African population still students to provide a clinical diagnosis for mental lacked access to electricity. Alongside the efforts indicated by IEA to provide electricity for all by health when needed. The psychologist is supported 2030, a key element in the race from poverty to by several counsellors available for consultation. The prosperity in Africa is indeed education. year 2018 saw the following mental health trends in student numbers. By improving knowledge and sharing practice with skilled and passionate individuals in the electricity • 101 students attended counseling sessions sector, a clean energy future can be achieved in Africa. To this aim, Enel Foundation joined forces • 330 student counseling sessions were held in with academia in Italy and Africa to establish a 2018 training venture, dubbed ‘Open Africa Power’, which In recognition that mental health is a big challenge combines in-depth, disciplinary knowledge with for young people, the Medical Centre launched holistic know-how in the electricity sector. the Mental Health Strategy. We collaborated with the Student Council and held the inaugural Mental Strathmore Extends its Footprint in The East Health Week in 2018. During this week, a mental African Region health hotline was launched with a campaign Strathmore’s pioneering solar energy expertise was dubbed ‘Make the Call’. The hotline services are extended to other nations through solar energy training offered to representatives of two of Kenya’s available toll-free for all callers, and a medical neighbours. counsellor is available three times a week for all students at no cost to facilitate the access of counselling services for those in need of them.

Other activities related to Mental Health Awareness in 2018 included: SERC Launches First Ever Solar PV Training in South Sudan • Talks given to female mentors on mental health Strathmore Energy Research Centre was the first on campus training institution to conduct technical training on • Talks given on mental health awareness during solar PV in Juba, South Sudan in 2018. The 5-day faculty parent seminars. training which took place at the Juba Landmark Hotel between the 17th and 22nd of September 2018 • Talks given to new students during orientation. had over 70 participants in attendance.

The training attracted a mix of participants from experienced solar technicians, students from the local universities and technical training institutes to solar vendors and NGO staff.

The programme was launched by Minister of Dams and Electricity, Dr. Dhieu Mathok Diing Wol and Prof. Ajuoi Magot Chol, who is the Chairman of the Board of Directors RECOSS.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 61 Strathmore University Eco-Cycle Wins at 2018 Valeo Innovation Challenge Strathmore University won the Innovation Challenge at the 2018 Valeo Innovation Challenge Maison de la Recherche in Paris.

The team from Strathmore Energy Research Centre was awarded the grand prize of 100,000 Euros for the innovative solar-powered eco-bicycle which can provide an affordable alternative to efficient transport needs.

Social & Relationship Capital The University’s research and education aim to benefit the wider society locally and globally. We work in partnership with public, private, voluntary and commercial organisations to enhance our positive public engagement and knowledge exchange. UN Migration Agency & Strathmore University Launch Solar Water Training Our Community’s Reach Strathmore University in partnership with Nairobi Strathmore’s Community Service Centre focuses its efforts towards promoting overreaching – IOM, UN Migration Agency, Oxfam and the involvement of our members towards being agents Norwegian Refugee Council launched a Solar Water of positive transformation of society. Pumping course on the 13th March 2018. Strathmore University creates opportunities for The course was part of the IOM-led Global Solar its students to identify themselves as active and and Water Initiative (GLOSWI), supported by the influential participants of society. We believe that European Union, and will also be incorporated these opportunities expand our students’ capacity to develop leadership skills that initiate positive into the SERC curriculum.The effort aimed at change across socio-economic lines, while at the building capacity among humanitarian engineers, same time contributing to the capacity of those government specialists, private sector actors and they encounter. consultants working in the fields of water supply and clean energy. In 2018 there was a 13.8% increase in student participation and an 8% increase in staff participation at camps and development of sustainable projects. This shows our commitment to developing students who will go on to become community and global leaders best equipped to contribute to the common good.

Our Community Reach Engagement Statistics

Important statistics Item 2014 2015 2016 2017 2018 Number of activities 52 48 54 49 55 Staff Participation 61 85 +107 87 94 Student participation 1,910 1,475 +1,864 1817 2068 Alumni Participation 35 60 173 184 174

Funds raised Euros: 105,721.5 Euros: 38,431 Euros: 53,025.25 KES: KES: Dollars: 24,790 Dollars: 52,650 Dollars: 6,950 7,058,055 8,602,845 KES: 160,927 KES: 968,427 KES: 260,817 Work Camps 6 3 7 5 9

62 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Community Engagement Work-Camps Each Macheo student is paired up with a mentor drawn from our undergraduate student community. Some of the Macheo graduates, currently in various undergraduate programmes at the University, form part of the mentoring team.

To ensure the Macheo mentors are equipped with the necessary mentoring and guidance skills to assist the Macheo mentees, we organized 5 Macheo mentor training sessions, 3 of which were facilitated by the Strathmore Mentoring office.

Alive to the World Series This year we introduced a book series - Alive to the world - into character development. This In 2018, the centre partnered with the LocalLives book follows a story-telling approach to character Foundation, Ireland, in the construction at Ithimani development, addressing various topics that present Primary School kitchen in Kitui. challenges to high school students, and tackling them through various characters in the story. The book teaches students about relationships, responsibility, entrepreneurship, communication among other topics and has been an engaging way of getting students to discuss their daily school and life challenges.

In December, staff working in Macheo and 2 mentors were trained using the books, a training of trainers’ course given by one of the book writers. Having been a success in 2018, we intend to continue using the book throughout 2019 in our character development sessions.

We also collaborated with the Villanueva University Macheo 2018 KCSE Success Story in Spain to complete a project launched in 2017 In 2018, Macheo enrolled 150 students from a at Multani School: The activities included medical total of 8 schools from 3 informal settlement camps, creation of teaching aid diagrams, communities of Kibera, Mukuru and Kangemi. pedagogy sessions, donation of laptops, painting of the school and construction of a poultry house In 2018 we increased the number of lessons from and a green house. The successful closure of the 2 Saturdays a month to 3 Saturdays a month. The project led to the high school acquiring government Macheo Saturday classes ran for 7 months with approval to offer computer classes which will 6 weeks set for revision classes spread in April, increase its capacity to improve its community August and November. KCSE candidates were through the services it provides. offered additional revision classes to prepare for their final high school exams. Working together with the Cafeteria staff, we had 9 staff members join COP students in a social visit to 41.9% of the students qualified to join university Tania Center. This was the first time we had such an after acquiring a cumulative average of C+ which arrangement and we are planning to make it more exceeded the national average by 28.2 %. The 2018 frequent. The staff managed to raise KES 13,000. Macheo candidates’ performance increased by 22.86 % from the previous year. Macheo Project Macheo is an initiative of Strathmore University’s Macheo Students performance above Community Service Centre. It is an after-school C (university acceptance mark Kenya) programme that helps high school students from humble backgrounds successfully complete their secondary education and increase their capacity to improve their future and become agents of change in their own contexts. 41.9 % 58.1% Through life skill sessions, Strathmore University C and above Below C organised 8 seminars in 2018 for the Macheo students which engaged them in interactive sessions that discussed ways of improving their social and academic attributes in order to promote overall responsibility and initiative.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 63 Financial Aid In 2018, Strathmore University awarded 106 scholarships, 80 of which were pure scholarships and 26 were sports scholarships. After making great strides to internationalisation, we awarded 15 international scholarships to students from various African countries like Mozambique, Zimbabwe, Liberia and DRC. In 2018, 83 students joined the work-study programme which offers the students work on either fulltime or part-time basis to earn a stipend. These funds assist the recipients to cater for their living expenses.

56 students further received loans to pay for their studies, with 50% of the loans issued by Strathmore University and the remaining 50% were issued to students by external parties through the University.

In support of our students’ ambitions, Strathmore’s Financial Aid office provided mixed financial aid to 36 students.

2017 2018 Summary trend Students Amount Students Amount Growth SU Scholarships 485 73,944,092.55 550 98,977,314.23 34% SU Loans 91 16,745,302.64 180 33,968,757.70 103% SU Discounts 193 14,893,448.60 97 11,174,504.25 -25% External Scholarships 331 60,058,124.14 362 36,022,448.17 -40% Total 1100 165,640,967.93 1189 180,143,024.35 9%

64 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 65 08 RESEARCH REPORT RESEARCH PERFORMANCE INDICATORS 2018

Strathmore University is a representation of a healthy academic ecosystem because of its wide coverage of academic disciplines, which provides a broader source of academic input to ultimately enrich our research.

Number of publications: 84 In 2018 there was a 27% increase in the total number of publications from the previous year, in comparison to the previous year. In addition, the University received grants amounting to Ksh 282 Million.

PROFESSOR IZAEL PEREIRA DA SILVA Number of active researchers: 102 DEPUTY VICE CHANCELLOR RESEARCH AND INNOVATION Research is a human resource intensive activity that has the quality of its output pegged on the researcher’s ability. Strathmore University has Research committee attracted 102 active and enthusiastic researchers who sustain the vibrant research landscape of the Name Position University. Prof. Izael Da Silva Chair Prof. Ismail Ateya Secretary Number of research events participated Prof. Ruth Kiraka Ex-Officio in: 100 Mr. Bernard Shiundu Ex-Officio Our researchers further participated in 100 research events in 2018. These events provided Mr. Vincent Ndoloka Ex-Officio the opportunity to bench mark and exchange Prof. Rachel Mbogo Member valuable insight amongst members of the globally Dr. Joseph Sevilla Member multidiscipline research community. Dr. Magdalene Dimba Member Dr. Pratap Kumar Member Premier Research and Innovation Conference Ms. Claire Adionyi Member The conference, whose theme was “Looking into the Future: Solving Tomorrow’s Problems with Today’s Dr. Bernard Shibwabo Member Research”, brought together researchers from the Dr. Bernadette Wanjala Member region. More than 150 papers were presented. The presenters included papers from the University’s Dr. Godfrey Madigu Member faculty, key industry players, research partners and Prof. Robert Mudida Member 46 undergraduate students. Dr. David Chiawo Member Dr. Bernhards Ogutu Member

Number of publications The human being is a perpetual problem solver. 84 published in 2018 Problem solving is facilitated by understanding collecting and analysing available information to the Active and enthusiastic senses in search of a solution. Our University seeks researchers at the University 102 to refine this everyday process of troubleshooting through refined academic research. In the year in Events participated in by 100 our researchers in 2018 review, Strathmore University increased the number of research activities, thus strengthening one of the Papers presented at Premier University’s strategic pillars. Furthermore, we are a Research & Innovation Conference 150 recognized and accredited research institution by the National Commission for Science, Technology Number of Brown Bag and Innovation (NACOSTI). 19 Research Sessions Held 2018

Our nationally recognised research endeavours attracted the third largest amount of national funding set aside for research, at 1.2% of the whole, which is the largest stake received out of all private The presentations ranged from nine multidisciplinary higher education institutions. areas, which included the following areas:

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 67 1. ICT, Mobile Applications and Cyber-Security Our research centres (ICT) 2. Public Policy, Governance and Integrity (Policy) 3. Renewable Energy and Energy Efficiency (Energy) 1 Kenya Climate Innovation Centre 4. Mathematical Applications and Economics (Mathematics) 2 Strathmore Energy Research Centre 5. Tourism and Hospitality (Tourism) 3 6. Law and Justice (Law) Strathmore Extractives Industry Centre 7. Health, Healthcare Management and Research 4 Ethics (Healthcare) Strathmore Enterprise Development Centre 8. Humanities and Social Sciences (Humanities) 9. Entrepreneurship, Business Innovation and 5 @iLabAfrica Research and Innovation Centre Management (Business) 6 Centre for Research in Therapeutic Sciences

7 Centre for Intellectual Property and Information Technology Law

8 Strathmore University Press

9 Strathmore Centre for Value Investing

10 Strathmore Risk Management Centre

11 Strathmore Centre for Sustainable Leadership

12 Centre for Research in Organisation Work and Family

13 Strathmore Institute for Healthcare Management 14 Strathmore Institute for Public Policy Number of Brown Bag research sessions held and Governance 2018: 19 15 Strathmore African Centre for Business Research Brown Bag sessions are short events in and Human Rights which researchers discuss about their research 16 Strathmore Institute of FamilyStudies work. It is an initiative driven by the research office and Ethics at the University. It aims at demystifying research in order to make it more accessible. In 2018 the Strathmore Research office held a total of 19 brown bag sessions with a total of 580 participants. Notable research outputs and innovations Our research areas of strength 1. Jipange Msee product takes first place in ASSK Energy product design competition 2018 Strathmore University students; Jackson Saitaga, Cindy Kinya, Eric Ng’ang’a and Kellie Charlotte from Mathematical Information the Actuarial Students Society of Kenya (ASSK) at Sciences Technology Product Design Competition (PDC). They came up OUR with an innovative insurance product design named RESEARCH Jipange Mse which won 1st prize. AREAS OF STRENGTH 2. Kenya takes top honours in the 2018 Valeo Extractives Innovation Challenge Entrepreneurship Sector Strathmore Energy Research Centre (Kenya) was awarded the grand prize of 100,000 Euros Health Care at the Valeo Innovation Challenge for their solar- Management powered Eco-cycle device which has the potential to positively impact rural areas and economically empower its people.

68 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 3. Geoffrey Injeni’s research paper ranked top in the Africa Call for Research Papers Initiative (ACRPI) His research paper titled “Current reporting and relationship with integrated reporting for listed companies in Kenya: Compliance Levels and Company Factors”, was ranked top in the 2019 Africa call for research papers initiative (ACRPI). He co-authored the papers with Dr. James McFie, Strathmore University, Prof. Robert Mudida, Strathmore University and Prof. Musa Mangena of University of Essex, England.

Sample publications in 2018

OUR NATIONALLY RECOGNISED RESEARCH ENDEAVOURS ATTRACTED THE THIRD LARGEST AMOUNT OF NATIONAL FUNDING SET ASIDE FOR RESEARCH, AT 1.2% OF THE WHOLE, WHICH IS THE LARGEST STAKE RECEIVED OUT OF ALL PRIVATE HIGHER EDUCATION INSTITUTIONS”.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 69 09 STUDENT AFFAIRS Student affairs Below is a list of the clubs and the respective Strathmore University recognises that our students’ number of members; education goes well beyond coursework, and by facilitating extracurricular student activities we Club Membership are promoting a vital part of our holistic student 1 AIESEC 75 experience. Strathmore Drama Society 2 We value our student voice and we constantly strive (DRAMSOC) 80 to incorporate our students’ hopes, wishes and Strathmore Actuarial Students 3 opinions into the University’s growth strategy. Our Society (SASS) 150 student engagement programmes seek to foster Strathmore University Finance student success and lifelong learning by facilitating 4 and Financial Economics inclusive activities, services, traditions, and events Students Association (SUFFESA) 150 that invigorate the ambitions and support the 5 Tax Club 80 various talents of our students. 6 Strathmore Business Club (SBC) 70 10th Strathmore Student Council 7 Strathmore Model United Nations 90 Our Student Council represents Strathmore 8 Marketing Club 65 University’s student body and provides the elected 9 Debate Club 45 council members the opportunity to experience and 10 Strathmore Chorale 40 learn from the practical aspects of leadership. 11 Chinese Club 20 In 2018, the Student Council served and represented 12 Japanese Club 25 the students of the University while acting as a 13 French Club 35 forum through which students may express their 14 German Club 5 views concerning their academic and social life, as provided for in section 29 of the Charter. 15 Spanish Club 15 Strathmore Human Resource Club 16 Council members (SHREC) 50 17 ENACTUS 110 Position Name Strathmore University Media 18 President Kevin Mwendwa Group (SUMG) 40 Vice President Catherine Mumo 19 Strathmore Band 20 Secretary General Richard Masika 20 Art Club 35 Public Relations Executive Lauren Obwora Hospitality and Tourism Students 21 Financial Executive Joshua Makara Society 60 Female Academic Executive Blessings Mutheu 22 Presidential Award Club 20 Male Academic Executive Arnold Nciko 23 Dance and Fitness Club 35 Female Sports Executive Rachel Otieno 24 Mental Health Club 25 Male Sports Executive Trevor Radido 25 Toast Masters 40 Strathmore University IT Students th 26 The 10 Strathmore Student Council channelled Association (SUITSA) 60 their efforts towards promoting a healthy and 27 First Aid Club 30 vibrant student experience. There were a number of initiatives put forward by the council with the help 28 Research Club 20 of both faculty and administration. The Student 29 Reading Club 20 Council also served the University by being a unifying office for all student affairs, which include The Strathmore clubs and societies provided clubs and societies’ activities, sporting events, as the University with a number of highlights and well as other interfaculty student activities such as achievements for the year in review as shown below: debates and seminars. 1. Elimisha Stratifest – The Student Council set out A. Clubs and societies to find alternative ways to support the Finance office in raising bursary funds for needy students The University offers a variety of co-curricular and jointly initiated the Elimisha Stratifest, a activities aimed at providing students with an one-day music and colour festival bringing well- opportunity for personal development and the known artistes, corporates and university students chance to socialize. We boast an array of clubs that together to support needy students. The event serve different interests including performing arts, held at the Strathmore Sports Complex had a languages and human resource. turnover of over 1000 students and raised a total of 330,000KES for the kitty.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 71 2. Club Olympics - The Club Olympics is an annual Annual clubs and sports awards 2018 event that brings together all the clubs and societies within Strathmore with not only the Clubs and sports awards Winner aim of fostering unity and cohesion but also as Club of the Year AIESEC a forum where students can express their non- Strathmore Business academic prowess in sports. AIESEC emerged Best club report Club winners in the 2018 edition. Best organised event AIESEC 3. Pan African Universities debate Best social media presence DRAMSOC championship - Strathmore emerged second Best club social in the Best East African Institution award responsibility ENACTUS category. The best East African speaker award went to Strathmore University law student, Most promising club Marketing Club Njuguna Macharia. The 2018 Pan-African Debate Best ambassadors of the Championship was hosted by Tanzania at the University AIESEC University of Dar es Salaam, Milimani Campus in Most enterprising club ENACTUS December 2018. Kenya Model United 4. Strathmore Chorale win silver at the World Most rewarding club Nations (KMUN) Choir Games - Strathmore Chorale won a silver Team of the year Handball men medal at The World Choir Games, a global Peter Mwathi - festival and competition that is held biennially. Coach of the year Handball men It was held in July 2018 in Tshwane Metropolitan Municipality, South Africa. The Strathmore Chorale got a chance to showcase their vocal Sports talents on an international platform alongside 351 Strathmore University has a vibrant sporting culture other choirs. with a majority of the teams participating in the national leagues. The University understands the 5. Student exchange programmes - AIESEC, a importance of balancing the rigors of academics youth leadership movement that addresses with other activities and sports is an area the world issues by developing leadership skills in University has invested in. In the year in review, 135 a challenging environment, had a total of 75 sports scholars received sports scholarships. students from Strathmore University participate in exchange programmes for the year in review. The students participated in the following Basketball programmes: Strathmore University’s men’s and women’s basketball teams are the defending Kenya • 67 students participated in the Outgoing University Sports Association (KUSA) champions Global Volunteer Programme (OGV) where with the men’s team having a 13-year winning streak they volunteered to join a social impact project and their counterparts having a four-year winning in a different country for a period of 6 weeks. streak. Both teams also participate in the national These projects are formed based on the UN basketball leagues. Sustainable Development Goals. • 4 students participated in the Outgoing Global Entrepreneur programme (OGE) where the Handball exchange participant works at a start-up for 8-12 The Strathmore University handball teams (men weeks in a different country. This is an unpaid and women) were the winners of the KUSA 2018; internship programme. the men’s team were the reigning champions at • 4 students participated in the Outgoing Global the games for the 4th year and finished 3rd in the Talent programme (OGT) where the participant Kenya Handball Federation League. works at a global firm for a period of 24 - 72 weeks. This is a paid internship programme Hockey open to recent graduates or students awaiting graduation. Both the women’s and men’s teams were 2018 KUSA champions. The women’s team has six of their players in the national team and the men’s team having seven of their players in the national team.

72 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Sports captain awards Sport Winner Table Tennis Mona Musibega Basketball Men Fidel Okoth Basketball women Joy Adongo Chess Men Peniel Weru Chess Women Elsa Majimbo Swimming Men Andrew Kinyajui Swimming Women Katherine Kaleche Table Tennis Men Kelvin Mwangi Table Tennis Women Evelyne Nyanchoka Archery Men Fidel Odongo Archery Women Divine Danga Scrabble Tracy Nzilani Karate Men Ian Mwenda Karate Women Esther Murerwa Rugby Cecil Otieno Hockey Men Festus Onyango Hockey women Jane Muragu Soccer Elvis Osodo Volleyball Men Authur Onyango Volleyball Women Sarah Beth Handball men Maxwell Munene Handball women Fiona Wasike

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 73 10 SCHOOLS’ REPORTS STH

SCHOOL OF TOURISM AND HOSPITALITY

MISSION To foster integral development through education, promoting excellence in service, upholding ethical principles and nurturing an entrepreneurial spirit to produce professionals of global standards.

VISION To be the anchor of transformational education for a thriving hospitality and tourism industry leading to enhanced quality of life.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 75 Key activities Activity Description New Dean Appointed Appointment of Dr. David Chiawo as Dean of the school. Hotel Business The students from STH Acumen EuroCHRIE qualified to undertake an University Challenge intense two-day course in 2018 Hotel Business Acumen at the Radisson Blu Hotel. Africa Hotel A student delegation Investment Forum attended the Africa Hotel Investment Forum (Student Workshop) at the Radisson Blu Hotel, Nairobi.

RESEARCH ACTIVITIES

Grants received Name and description of Name of grant recipient Research equipment grant: David Chiawo DR. DAVID CHIAWO awarded by IDEA WILD DEAN, SCHOOL OF TOURISM AND HOSPITALITY Publications Staff statistics Author Publication title Faculty Administration Chiawo, D.O, Bird responses to land use Total Kombe, W.N. change: guild diversity in a and Craig, J.F.K. Kenyan coastal forest and 13 6 adjoining habitats. Emu – Austral 19 Ornithology, 118(3), 281-292. https://doi.org/10.1080/01584197. 2018.1431052

Student statistics Research events organised Area of study Total Name of Event description event Bachelor of Science in Hospitality and Hotel Management 106 3rd Africa Co-organised with the African Conference on Fund for Endangered Wildlife Bachelor of Science in Tourism Sustainable – Kenya (AFEW-Kenya) and Management 24 Tourism in collaboration with the 2018 Executive Home Management Strathmore University Research Education 40 and Innovation Conference, this Hospitality Professional Leadership event explored issues related 20 to sustainability in tourism and Development Program (HPDP) conservation. Culinary Arts and Personal Development course 41

76 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 77 SHSS

SCHOOL OF HUMANITIES AND SOCIAL SCIENCES

MISSION To support the advancement of the overall Strathmore University mission by: providing an all-round education through the teaching of the humanities; by creating continuous improvement of personal development in character, culture, integrity, professionalism, good citizenship; the enhancement of educators; education for effective communication; facilitating development consciousness and openness to all people through international studies.

VISION To enhance the general teaching of the Universities through the Humanities.

78 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Key activities Activity Description Public lectures Strathmore University’s Director of Communication and University Relations, Betty Ngala, gave a talk on corporate communications. Jennifer Gatero – Associate Director Avant Films; Winnie Adisa – Director Kinetic Films – and Caroline Kemunto Momanyi – Writer/Producer Kinetic Films gave a lecture on the general setting of the professional Film industry in Kenya. Stella Kihara from Africa Centre for Development Communication and Angela Mutegi from Purple Frames gave a lecture on Communication for Development (C4D). BA in Christian Gruenhagen gave International a lecture on Diplomacy and Studies Public Conflict Transformation. Lecture BA in George Okoth - Team Leader, PROFESSOR CHRISTINE GICHURE Development Health, Education and DEAN, SCHOOL OF HUMANITIES Studies and Protection Sector at Catholic AND SOCIAL SCIENCES Philosophy Relief services (CRS) Kenya Public Lecture and Dr. John Kembe, Medical Doctor and Community Health Staff statistics and Development specialist at Graduate CRS Kenya gave a lecture on Faculty Administration Assistants Community Development. Total World Food Erika Joergensen - WFP Program Regional Director for East 27 7 3 37 Talk On Zero and Central Africa gave a Hunger talk on zero hunger through empowering women on Friday. Academic Trip Students of the pioneer Bachelor of Arts class had Student statistics the opportunity to experience the rich cultural life in three Area of study Total European cities: Paris, Pamplona Bachelor of Arts in Development and Madrid during their Studies and Philosophy 9 academic trip. Bachelor of Arts in Communication Master of 30 MScEM students and staff from Science in Strathmore University had the Bachelor of Arts in International Education 80 opportunity to visit Finland in Studies Management April for an academic trip. Masters in Applied Philosophy and 15 (MScEM) Ethics Master of In September, MAPE held a Master of Science in Education Applied public lecture on Artificial Management 27 Philosophy Intelligence and its impact in the and Ethics society. (MAPE) Public Lecture A Philosopher’s Breakfast that focused on the question of a just war was held in November.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 79 RESEARCH ACTIVITIES

Publications Research events attended Authors and Publication title Attendee Event description co-authors Dr. Anne Understanding and Navigating Momanyi, C Competence Based Curriculum Maureen Regionalism in Africa Conference for skills development through Syallow dual training: evidence from School of Why Authors Should Take Time Eastlands College of Technology. Business at to Publish Good Books. Daily IICEDubai2018 Conference the American Nation. Proceedings. University in Dindi, A, Ethics as a Solution to Cairo Munala, G, Corruption: A Case Study of the Dr. Maria 10th International Conference Alkizim, A, Construction Industry in Kenya. Rosario on Catholic Social Thought and Kivaa, P and Africa Habitat Review Journal, Catacutan Business Education: Schulze Gichure, C. 12(2). 1339-1349. ISSN: 2524-1354 Hall, University of St. Thomas, Minneapolis Campus Publications Dr. Maria Mainstreaming Ethics in Higher Rosario Education Conference, Catholic Writer Title & description of publication Catacutan University of Eastern Africa Dinda, G. Values and Virtues as a Starting (CUEA) Nairobi. Point in Writing. Kenya Publishers Christopher IAFOR International Conference Association Magazine. Momanyi on Education Dubai 2018. Dubai, Dinda, G. Why Authors Should Take Time UAE. to Publish Good Books. Daily Christopher 6th International Conference Nation. Momanyi on Mobile technologies for Dinda, G. Five Crucial Lessons from Nairobi Development (M4D) Book Fair. Daily Nation. 18 members of 2018 Strathmore University SHSS were in Research and Innovation Books and chapters attendance Conference: Author Publication title Omondi, K., Sound Classification Scheme Phiri, B and to Enhance Physical Security in Njogu, H. Schools. LAP Lambert Academic Publishing.

80 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 81 SIMS

STRATHMORE INSTITUTE OF MATHEMATICAL SCIENCES

MISSION To nurture the growth of mathematical expertise among research scientists by fostering fundamental and multidisciplinary research and consultancies in areas of applied mathematics and mathematical sciences, and to improve the teaching and learning of mathematics.

VISION To be a centre of excellence in applied research and innovation in mathematics and mathematical sciences, and to contribute to the quality of teaching of mathematics.

82 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Key activities in 2018 Activity Description CFA 4th year Bachelor of Business Science Research students competed in the 2018 CFA Challenge Research Challenge that took place Finals in Ireland in April. The team of five: Rodrigues Wambua, Jacqueline Gathoni, Luqman Hussein, Cynthia Wambui and Jeffery Murerwa, reached the semi- finals in the regional competitions. World Quant Wayne Matengo, Ida Mwango, Millicent Research Menya, Ken Muturi and Eric Ng'ang'a Challenge participated in the World Quant (Global Competition and emerged top in Africa. Finals) They then proceeded to Singapore for the global competition. The teams went through various challenges that required them to generate robust alphas that predict the performance of financial instruments. African Research by Mary Mukuria, William Financial Ngeno, Darshak Bharadva, Sharon Mutia, Journal Julie Songok and John Nderitu was Conference accepted in the Africa Finance Journal Conference held on 18th April 2018 in Nairobi. Class Council To improve the students’ experience at the school level, Strathmore Institute FERDINAND OTHIENO of Mathematical Sciences through the DEAN, STRATHMORE INSTITUTE OF class council, directly engaged students MATHEMATICAL SCIENCES in ways to improve student activities, participation and engagement. Staff statistics Visiting The institute had the pleasure to host Professors Prof. Luis Alberico from Spain, visiting fellow, Dr. Chirove, visiting fellow, Prof. Full Time Part Time Administration Omolo and Prof. Farai Nyabadza from Total South Africa and Prof. Mark Thomas. BBS Family On 26th September 2018, the Institute 47 23 7 77 Day came together for the 5th Annual BBS Family day. This is a forum where students are given an opportunity to give their feedback to the Institute’s team as well as share their BBS experiences. Student statistics Area of study Total RESEARCH ACTIVITIES Bachelor of Business Science in Actuarial Science 152 Grants received Bachelor of Business Science in Name and description of grant Name of Amount Financial Economics 280 recipient received Bachelor of Business Science in Gwen Frostic Doctoral Fellowship Grant: Awarded Mary Financial Engineering 119 USD 4000 by the Graduate College at Ochieng’ Master of Science in Mathematical 14 Western Michigan University Finance Graduate Student Data Master of Science in Statistical Collection Grant: Mary 28 Awarded by Graduate Student USD 500 Science Ochieng’ Association of Western Michigan Master of Science in University. Biomathematics 5

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 83 Name and description of grant Name of Amount Author Publication title recipient received Luboobi, L. S., Mathematical Modelling of the Impact Simons Foundation Grant: This Omondi, E. O. of Testing, Treatment and Control of grant was awarded to support SIMS R 5000 and Mbogo, HIV Transmission in Kenya. Cogent Mathematics research. R. W Mathematics & Statistics, 5(1), 1-16. doi: 10.1080/25742558.2018.1475590. NRF Conference Grant Dr. Rachel Luboobi, L. S., Mathematical model for the in- USD 3000 Waema Orwa, T. O. and host malaria dynamics subject Mbogo. Mbogo, R. W. to malaria vaccines. Letters in Biomathematics, 5(1), 222-251, DOI: 10.1080/23737867.2018.1526132. PUBLICATIONS Mbogo, R. W. On The Future of HIV Related and Nyabadza, Cancers: Insights from a Mathematical Author Publication title F. Model. BioMed Research International. Bii, N. K., and Model-Assisted Estimation of a Finite Muthoni, L. and Construction of Multidimensional Onyango, C. O. Population Mean in Two-stage cluster Mikui, W. Poverty Index for Kenya using Alkire- sampling. Pakistan Journal of Statistics Foster Method. Harvard Africa Policy and Operations Research, 8(1), 127-139. Journal, 7, 101-130, Bii, N. K., Estimation of a Finite Population Muthoni, L., Modelling Factors Affecting Probability Onyango, C. O. Mean Under Random Non Response. Kamau, P. N. of Loan Default: A Quantitative and Odhiambo, Open Journal of Statistics. https://doi. and Odhiambo, Analysis of the Kenyan Students’ Loan. J. org/10.4236/ojs.2017.75059. C. International Journal of Statistical Distributions and Applications, 4(1), Kebirungi, H., Gender Responsiveness of Provisioning 29-37. doi: 10.11648/j.ijsd.20180401.14. Luboobi L. S., and Management of Water and Kabonesa, C. Sanitation Facilities in East African Nampala, H., Modelling hepatotoxicity and and Kimwaga, Universities. International Journal of Luboobi, L. antiretroviral therapeutic effect in R. J. Gender and Women’s Studies, 6(1), 121- S., Joseph Y.T. HIV/HBV coinfection. Mathematical 132. ISSN: 2333-6021. Mugisha, C. O, Biosciences, 302(2018), 67-79. and Jablonska- Luboobi, L. S, Mathematical Analysis of Influenza: Sabuka, M. Kanyiri, C. W. A Dynamics in the Emergence of and Kimathi, M. Drug Resistance. Computational and Ngina, P. M., Modelling Optimal Control of In-Host Mathematical Methods in Medicine, Mbogo, R. W. HIV Dynamics Using Different Control 2018. and Luboobi, Strategies. L. S. Luboobi, L. S. Mathematical Model for Hepatocytic- Orwa, T. O. and Erythrocytic Dynamics of Malaria. Ochieng’, M., Teachers’ orientations toward using Mbogo, R. W International Journal of Mathematics Stockero, S. L., student mathematical thinking as a and Mathematical Sciences, 2018. Leatham, K. R., resource during whole class discussion. Van Zoest, L.R., Journal of Mathematics Teacher Luboobi, L. S., A stochastic Model for Malaria and Peterson, Education, 1(2019), 1-31 Mbogo, R. W. Transmission Dynamics. Journal B. E. and Odhiambo, of Applied Mathematics, 2018. doi J. W. 10.1155/2018/2439520. Ochieng’, M., Attributes of instances of student Van Zoest, L. mathematical thinking that are worth Luboobi, L. S., Modeling Optimal Control of Cholera R., Stockero, S. building on in whole-class discussion. Namawejje, H. Disease Under the Interventions of L., Leatham, K. Mathematical Thinking and Learning, and Obuya, E. Vaccination, Treatment and Education R., Peterson, B. 19(2017), 33-54. Awareness. Journal of Mathematics E., and Atanga, Research, 10(5), 137-152. N. A. Luboobi, L. S., Plague disease model with weather Ochieng’, Action of Cyclic GROUP C n acting Ngeleja, R. C. seasonality. Mathematical Biosciences, R., Olum, F., on the Diagonals of a Regular n-gon. and Nkansah- 302(2018), 80-99. Kamuti, I. and Journal of Mathematical Theory and Gyekye, Y. Kavila, M. Modelling, 6(1), 115-125. Luboobi, L. S., Modelling Optimal Control of In- Odhiambo, C. Smooth Test of Goodness-of-Fit Ngina, P. and Host HIV Dynamics Using Different for Negative Binomial Distribution Mbogo, R. W. Control Strategies. Computational and with Application to Unscheduled Mathematical Methods in Medicine, HIV Care Visits in a Tertiary Hospital. 2018. International Journal of Statistics in Luboobi, L. S., Mathematical Analysis of Sex-Structured Medical and Biological Research, 2(1), Omondi, E. O. Population Model of HIV Infection in 1-7. and Mbogo R. Kenya. Letters in Biomathematics 2018, Odhiambo, C. Validation of the Smooth Test of W. 5(1), 174–194. Goodness-of-Fit for Proportional Luboobi, L. S., Modelling the trend of HIV transmission Hazards in Cancer Survival Studies. Omondi, E. O. and treatment in Kenya. International International Journal of Statistics in and Mbogo, Journal of Applied and Computational Medical Research. R. W Mathematics, 4, 83-98.

84 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Author Publication title RESEARCH EVENTS ATTENDED Odhiambo, C., Modelling Factors Affecting Attendee Event description Kamau, P. N., Probability of Loan Default: A Muthoni, L. Quantitative Analysis of the Kenyan Dr. Collins 12th International Conference on Students’ Loan. International Journal Odhiambo Health Policy Statistics: organised of Statistical Distributions and to create interfaces between Applications, 4(1), 29-37. doi: 10.11648/j. practitioners; methodologists; and ijsd.20180401.14. health service researchers, health economists, and policy analysts to Odhiambo, C., A Smooth Test of Goodness-of- inform the policy community was Kamau, P. N., Fit for the Weibull Distribution: An held in Charlseton, South Carolina. Muthoni, L. Application to an HIV Retention Data. Dr. Collins Joint International Society for International Journal of Statistics in Odhiambo, Clinical Biostatistics and Australian Medical Research, 6(2), 68-78. Statistical Conference 2018 themed: Odhiambo, C., A Smooth Test of Goodness-of-Fit Evaluating The Effects of Isoniazid Omolo, B., and for the Baseline Hazard Function for Preventive Therapy (IPT) on HIV/ Odhiambo, J. Time-to-First Occurrence in Recurrent AIDS Disease Progression Using Non- Events: An Application to HIV Homogeneous Semi-Markov Process Retention Data. International Journal was held in Victoria, Australia. of Statistics in Medical Research, 6(3), Evans Evans attended the SEAMS School 104-113. Omondi and 2018 in Malaysia which provide active Omondi, E., Mathematical analysis of sex- Titus Orwa researchers from various fields of Mbogo, R., and structured population model of mathematics the opportunity of Luboobi, L. HIV infection in Kenya. Letters in discussing recent developments Biomathematics, 4(5), 174-194. in theoretical and computational Omondi, E., Modelling the Trend of HIV techniques for dynamical systems Mbogo, R., and Transmission and Treatment in Kenya. and their applications. Luboobi, L. International Journal of Applied and Dr. Collins 2018 HIV Prevention Care and Computational Mathematics, 4(5). Odhiambo Treatment Scientific Conference Omondi, E., Modelling the impact of mass themed: Evaluating The Effects of Nyabadza, F., administration of ivermectin in the Isoniazid Preventive Therapy (IPT) and Smith, R. treatment of onchocerciasis (river on HIV/AIDS Disease Progression blindness). Cogent Mathematics and Using Non-Homogeneous Semi- Statistics, 4(5). Markov Process. The conference was held in Nairobi. Omondi, E., Modelling the Infection Dynamics of Nelson Bii The 3rd International Conference on Nyabadza, F., Onchocerciasis and its Treatment. Mathematical Sciences and Statistics Bonyah, E., and Journal of Biological Systems. 25(2), (ICMSS2018; Universiti Putra Badu, K. 247-277. Malaysia (UPM). Omondi, E., Application of optimal control to Prof. Kibabii Unversity 3rd International Orwa, T., and the onchocerciasis transmission Livingstone Conference themed: Creativity Nyabadza, F. model with treatment. Mathematical S. Luboobi and Innovation for Sustainable Biosciences, 297(2018), 43-57. Development. It was held in Kenya. Orwa, T. O, Application of optimal control to Prof. Strathmore University Doctoral Omondi, E. O. the onchocerciasis transmission Livingstone Supervisors’ Forum: “Co-supervisors: and Nyabadza, model with treatment. Mathematical S. Luboobi Roles and Responsibilities;” F. Biosciences, 297(2018), 43-57. “Matching Students to supervisors;” Orwa, T. O., Mathematical Model for Hepatocytic- and “Skills for Effective Mbogo, R. W., Erythrocytic Dynamics of Malaria. Supervision.”, Strathmore University. Luboobi, L. S. International Journal of Mathematics Prof. 1st Joint Strathmore University and and Mathematical Sciences, 2018. Livingstone Stellenbosch University Doctoral Orwa, T. W., Mathematical model for the in- S. Luboobi Supervisors Workshop: This event Mbogo, R. W., host malaria dynamics subject and Dr. was co-organised by the School of Luboobi, L. S. to malaria Vaccines. Letters in Rachel Graduate Studies and Stellenbosch Biomathematics, 5(1), 222-251. doi: Waema University, South Africa. 10.1080/23737867.2018.1526132. Mbogo Otieno, P. A, Rational homotopy type of Gatsinzi, J. B., mapping spaces between complex and Otieno, Grassmannians. Quaestiones V. O. Mathematicae. Otieno, P. A, Rationalised evaluation subgroups of Gatsinzi, J. B., mapping spaces between complex and Otieno, grassmannians. Afrika Matematika. V. O. Otieno, P. A. Gottlieb groups of the Plucker embeddings of some complex Grassmannians. Communications of the Korean Mathematical Society. STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 85 SLS

STRATHMORE LAW SCHOOL

MISSION To achieve legal excellence through providing a supportive learning environment that inspires innovation and critical thinking, promoting ground-breaking research, actively pursuing justice and nurturing virtuous and entrepreneurial leaders.

VISION To be a school renowned for excellence in legal education and research, guided by a commitment to pursue justice, to cultivate lawyers of professional competence and moral conviction, and to be the region’s hub for change agents.

86 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Key activities Name of Description activity Prize Giving The 6th C.B. Madan Prize awards and CB ceremony was held at the Microsoft Madan Auditorium, Strathmore Law School Memorial on 7th December 2018. Lecture The recipient of the C.B. Madan prize was Lady Justice Mumbi Ngugi in recognition for her consistency in defending human rights and constitutionalism. Legal Aid Criminal Justice Clinics The main project for this clinic is the prisons training project in conjunction with the African Prisons Project (APP). Through this partnership, the unit has been able to train ‘paralegals’ in prisons on criminal law, criminal procedure and evidence law. Human Rights On the advocacy side, we launched the #EndRapeCulture social media campaign towards the end of the year. The intended effect of the campaign was to raise awareness on the nature of consent and the blurred lines that exist in social settings, DR. LUIS FRANCESCHI DEAN, STRATHMORE LAW SCHOOL particularly with university students. Entrepreneurship The Intellectual Property (IP) group Staff statistics received training from the Centre for Intellectual Property and Information Faculty Administration Technology at Strathmore University.. Total Academic The third year Strathmore Law School Trip, March - students visited the Netherlands, 57 6 63 April 2018 Germany, France, Switzerland, and Dubai. They attended lectures at the International Criminal Court; The International Court of Justice and Leiden University. They were also hosted at the Kenyan Embassy in the Student statistics Netherlands and had a lecture and an exam at the Law School’s partner institution, University of Cologne. Moot Court Strathmore Law School students Total Number Competitions participated in the Regional Foreign Direct Investment International 690 Arbitration Moot 2018. The Centre For Intellectual Property and Information Technology emerged as runners-up at the Moot. Book Launch The Strathmore University Institute and Public for Family Studies and Ethics (IFS) Lectures and Strathmore Law School hosted the launch of ‘Our Lives in His Hands: An Ordinary Couple’s Path to Holiness’ by Dr. Olga Emily Marlin.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 87 Centre for Intellectual Property and Information Technology Law, CIPIT

CIPIT: Key activities Name of activity Description Open AIR Project CIPIT hosted a three-day workshop to launch the third phase of the Open African Innovation Research (Open AIR) Project. The Open AIR Project is a unique collaborative network of respected veteran researchers, exploring the role of intellectual property in Africa’s open development. Biometric Technology, Elections, Investigation of Privacy Implications of Biometric Voter Registration and and Privacy Identification in Kenya’s 2017 Election Process. (A project with the goal to re-conceptualize security and economic empowerment in modern society). This project was in collaboration with Privacy International. Legal, Policy and Technical An analysis of Internet Shutdowns and the Electoral Process in Kenya Forms of Information Controls (A grant to research on internet freedoms in Kenya to bring a deeper understanding of information controls during political processes and how this affects public policy on elections, freedom of expression and human rights in general). This project is in collaboration with Ford Foundation. Internet freedom concepts: A This project addressed the conceptual and graphical modelling of digital localized explainer pack. rights concepts to make them more accessible in our society. Role of Internet Service Providers This study defines ISPs as actors that connect user’s devices to the play in effecting censorship. A Internet. ISPs are critical levers in the Internet ecosystem, linking other Comparative Study of Ethiopia, intermediaries like web hosts, and web content providers. This project is in Kenya and Uganda. collaboration with Mozilla. IP Clinic CIPIT worked closely with inventors and the Kenya Industrial Property Institute (KIPI) to equip inventors with knowledge on the process of obtaining patents for inventions both locally and internationally.

Strathmore Extractives Industry Center, SEIC

SEIC: Key activities Name of activity Description Youth in Extractives Youth in Extractives (YIE) initiative was introduced to get young people interested in the extractives industry and to see that they have a stake in its success in Kenya through Mining 4i Forum; Energy 4i Forum and the Extractives Moot Court Competition. Kenya Extractives Policy Out of the Kenya Policy Dialogues was formed the Extractives Policy Dialogues Working Group (EPWG) chaired by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) with the Extractives Baraza, under SEIC, as its ‘secretariat’. Gender Forums K-EXPRO project was conducted in collaboration with the Association of Women in Energy and Extractives in Kenya (AWEIK) towards hosting the first ever forum in the country, in Turkana County. Strathmore University Innovation As part of the Strathmore University Innovation Week, SEIC organised, Week – Roundtable on Benefit facilitated and moderated a roundtable discussion on benefit sharing Sharing in Kenya’s Extractives Sector with panels drawn from Tullow Oil, Kenya Chamber of Mines, Kenya Civil Society Platform for Oil and Gas and participation from Strathmore students. Amazing Race and the Africa Strathmore Extractives Industry Centre, in collaboration with the University Mining Legislation Atlas (AMLA) of Kigali and the Africa Legal Support Network (ALSF) organised the in Kigali, Rwanda Amazing Race and the Africa Mining Legislation Atlas (AMLA) in Kigali, Rwanda. Presentation on Gender and This presentation was made during the Corporate Social Responsibility and Petroleum in Kenya Sustainable Inclusive Business Forum held in March 2018 in Nairobi. World Bank Conference SEIC’s representative, presented a paper titled “Breaking 'Gender Asset' Barriers in East Africa's Extractives Industry: Focus on Women Economic Empowerment through Skills Building”, at a World Bank Conference held in Washington DC. Extractives Golf Tournament A prime networking platform for key stakeholders within the petroleum and mining sectors was held on 16th November at the Windsor Golf Hotel & Country Club, Nairobi. Kenya Extractives Policy Strathmore university hosted the two-day Forum for establishing a holistic Dialogues 3 environment, health and safety (EHS) strategy for Kenya’s petroleum value chain.

88 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore Dispute Resolution Centre, SDRC

SDRC: Key activities Name of activity Description 40-Hour Mediation SDRC hosted its annual 40-hour Mediation Training and accreditation which is offered Training to individuals seeking globally recognized professional qualifications in mediation. (CPD) Sessions in Court Management Committee charged with the responsibility of automating Mediation the Mediation Committee with a view piloting Court-mandated mediation in the Family and Commercial and Admiralty Divisions of the High Court of Kenya. Invesco Assurance SDRC partnered with Invesco Assurance Co. Ltd to set up a mediation pilot project Co. Ltd Mediation whereby SDRC will be able to offer mediation services for disputes that arise between Pilot Project the insurance company and claimants. Mediation Conference SDRC in partnership with Dispute and Conflict Resolution International hosted a 2018 Mediation Conference held from the 25th to 27th July. Taskforce on SDRC has been involved in the activities organized by the Taskforce on Alternative Alternative Justice Justice Systems in partnership with the Judiciary Training Institute. Systems

SLS research activities

Grants received Title and description Recipient Amount received Advancing Capacity and Access to Justice on Kenya’s Extractives Geoffrey USD 178,320 Sector: Judiciary Training Project awarded by Ford Foundation Kerecha Development of a Transparency and Accountability Framework and Action Plan for Kenya’s Petroleum Sector: awarded by the World Kate Mavuti USD 93,054 Bank through the Ministry of Petroleum and Mining Realising SDGs in Africa: The Role of Responsible Business awarded by Kate Mavuti USD 423,913 the Danish International Development Agency (DANIDA) Kenya Extractives Programme awarded by the Oxford Policy Dr Melba GBP 555,000 grant Management Wasunna Report on the Use of Biometrics awarded by Privacy International Dr Robert USD 14,291 Muthuri The Role of Intellectual Property in Open Development awarded to Dr Isaac by the Social Sciences and Humanities Research Council of Canada USD 15,000 Rutenberg (SSHRC) and International Development Research Centre (IDRC) Legal, Policy and Technical Forms of Information Controls awarded Dr Robert USD 75,000 by Ford Foundation Muthuri Digital Rights: from LUSH was awarded to fund the “Internet Freedom Grace Diida USD 13,000 Concepts: A Localized Explainer Pack” project Role of ISPs in Internet Censorship across Africa: Mozilla funded the Jacquelene “Internet Freedom and the Electoral Process in Kenya: The Legal and USD 10,000 Wangui Policy Framework” project Social Media Exchange (SMEX) Grant: was awarded by SMEX. It is Dr Robert meant to fund a project titled “Adoption of the CASEDATA Data Model USD 82,427 Muthuri and Taxonomy as a Standard for Publishing of ICT-Related Laws”

Research events organised Title Description Launched on 30th August 2018 in collaboration with the Kenya Institute KIPPRA Mentorship for Public Policy Research and Analysis (KIPPRA) aimed at harnessing Programme for Universities the link between academia and public policy-making to promote national development. This event took place in October 2018 and was organised with the Legal Aid Roundtable Strathmore Law Clinic to create a platform for collaboration between legal clinics in Kenya.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 89 TITLE Description Extractives Golf Organised in collaboration with Tenistore Enterprise, this tournament took place in Tournament November 2018 and provided a networking platform for key stakeholders within the petroleum and mining sectors. Youths in Extractives This Moot was introduced to get young people more interested in the extractives Moot Court industry. It was supported by Kenya Oil and Gas Association (KOGA) and Kenya Competition Extractives Programme K-EXPRO, as well as various donors, including Oraro & Co. Advocates and Oseko Ouma Advocates. Gender Forums Organised in July, September and October 2018 in collaboration with Association of Women in Energy and Extractives in Kenya (AWEIK) and Kenya Extractives Programme (K-EXPRO), these forums were meant to interrogate challenges and opportunities for women in Kenya’s extractives value chain. Roundtable on Benefit Run as part of the 2018 Strathmore University Research and Innovation Symposium in Sharing November 2018, this roundtable discussion was meant to address benefit sharing in Kenya’s Extractives Sector. Amazing Race and This event was organized in December 2018 in collaboration with the University of the Africa Mining Kigali and the African Development Fund. Legislation Atlas (AMLA) Training for Lawyers In collaboration with the International Senior Lawyers Project, the training provided and Civil Society local lawyers and civil society members with the tools and skills needed to engage Organisations effectively with major multinationals and to negotiate on behalf of affected on Fundamental communities. Considerations of Oil and Gas Transactions Symposium on the Organised in May 2018 in collaboration with the Universidad Ponti cia Comillas School Right of Children with of Law (Spain) and funded by the Santander Bank Endowed Chair for Children and Disabilities to Access the Law, the purpose of this symposium was to provide academics, practitioners, Education – Critical CSOs and government officials with an opportunity to engage in dialogue concerning Considerations for Best the challenges, successes and way forward in fulfilling the right to quality education Practices for children with disabilities. ICT Law-Data Held on 11th and 12th October, this event was funded by Google. Protection Moot Court The Mediation Held in conjunction with Dispute and Conflict Resolution International and the Conference 2018 Institute of Certified Secretaries, from 25th to 27th July 2018, this conference brought together practitioners from different fields with the aim of exploring mediation as an alternative form of dispute resolution.

Research events attended Description Attendee LSE Gender and Peace Workshop held at the London School of Economics Emmah Wabuke. LEAC Visiting Researcher at the University of Leiden in the Netherlands Patricia Ouma Pázmány Péter Catholic University Workshop held in Hungary Patricia Ouma Corporate Social Responsibility and Sustainable Inclusive Business Forum held in Kenya. Kate Mavuti. Regional Forum on Transparency, Gender Sensitivity and Accountability held in Tanzania Dr. Melba Wasunna Conference on Gender and Oil, Gas and Mining: New Frontiers of Progress, Challenges Kate Mavuti and Solutions, organised by the World Bank in Washington DC African Forum for Doctoral Research in Human Rights (AfriDoors) organised by Dr. Jennifer Gitahi Strengthening Human Rights Research and Education (SHUREA) and the University of Nairobi Institutional Research Ethics Review Training, held at Strathmore University Dr. Jennifer Gitahi Dissemination Workshop of the Listening Project into Grievances and Grievance Purity Maritim Handling Mechanisms for the Extractives Sector in Kenya was held in Nairobi National Stakeholder Forum on Cultivating a Robust, Coordinated Alternative Dispute Harrison Mbori Resolution (ADR) Framework in Kenya towards Sustainable Economic Growth and Access to Justice was held in Kenya

90 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Publications Authors Adionyi, C. The Health Act 2017: Examining Quality Control in Kenya’s Healthcare Facilities. Strathmore Law Journal. Mukuki, A. Reimagining the Concept of Forced Migration in The Face of Climate Change. Groningen Journal of International Law. Mukuki, A. The sacrosanct? The challenge in holding the United Nations responsible for the failure to prevent genocide. Strathmore Law Journal. Mukuki, A. and National Security Versus The Principle Of Non-Refoulement: Where Do The Scales Tilt? Bucha, S. African Union Commission on International Law Journal. Senge, E. Enhancing Access to Justice in Kenya: The Imperative of ADR Alternative Dispute Resolution. Senge, E. Female Militancy in Terrorist Groups and the AU Counterterrorism Response. African Peace and Security Journal.

Books chapters Authors Title Franceschi, L. Judicial Review and Public Power in Kenya: Revisiting Judicial Response to Select Political G., Muthoni, L. Cases. In R. Arnold and J. Martínez-Estay(Eds.), Rule of Law, Human Rights and Judicial and Senge, E. Control of Power: Some Reflections from National and International Law. Ambani, J Drilling Past the Resource Curse? Essays on the Governance of Extractives in Kenya. Nairobi, Kenya: Strathmore University Press. Ambani, J. and Mining Law: Commentaries on Kenya’s Framework Legislation. Wasunna, M. K. Franceschi, L. Judicial Review and Public Power in Kenya: Revisiting Judicial Response to Select Political G., Muthoni, L. Cases. In R. Arnold and J. Martínez-Estay(Eds.), Rule of Law, Human Rights and Judicial and Senge, E. Control of Power: Some Reflections from National and International Law.

International collaborations Partner Area of support Ford Foundation To promote capacity building and research in oil and gas Towards the building of a new ultra-modern law school library in the Anjarwalla & Khanna Sir Thomas More Building. OSIEA Capacity building for youth in extractives (oil , gas and mining) DANIDA To support business and human rights. Norwegian Agency for Development To promote capacity building, research, stakeholder engagement (oil Cooperation (NORAD) and gas) Kenya Petroleum Technical In research and policy strategy formulation Assistance Project (KEPTAP) Catholic Agency for Overseas Capacity building Development (CAFOD) Taita Taveta County government Capacity building for mining innovators African Development Bank(AFDB) Capacity building for private sector Tullow Oil Kenya B.V and Uganda Research Petroleum Authority

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 91 FIT

FACULTY OF INFORMATION TECHNOLOGY

MISSION To be a leading teaching, training and research department, offering superior quality and affordable academic, professional training, and research in Information and Communication Technology (ICT), promoting entrepreneurship and business growth globally.

VISION To be a world-class ICT trainer, promoting integration between academia, research and industry in order to promote assimilation and use of technology in business environments in an atmosphere of high ethical and professional performance.

92 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Key activities Name Description International 58 students and five members of Academic staff went on an academic trip to Trip Malaysia on the 3rd of February 2018. They visited Nanyang Technological University in Singapore, National University of Singapore, University of Technology, Malaysia, and University of Malaya, Malaysia. Class On 9th March, 2018, the FIT faculty and of 2018 administrative staff imparted goodwill Farewell messages to the students who were Dinner leaving for the industry ready to “take on the world.” CISCO The department sponsored six faculty Training for the IT Essentials course, CISCO training, and CISCO instructor courses. This professional training equips the lecturers with the current skills required for the networking courses taught in the undergraduate and professional courses. Mini Career In collaboration with the Careers Fair Services department and the Strathmore Institute of Mathematical Sciences, FIT held a mini Career DR. JOSEPH ORERO Fair which was attended by: Cloud DEAN, FACULTY OF INFORMATION Factory, Jumia Kenya, KCB group, TECHNOLOGY AAA Growers, Mo-De, Greenbell Communications, Digital Leo, McKinsey & Co., Sanlam EA, Aerosafe, Credit Staff statistics Factory, and Standard Chartered. Faculty Faculty Administration Parents/ The seminars were held to give (Full Time) (Part Time) Total Guardian parents and guardians an insight into Seminars the type of learning experience their dependants are exposed to as well as 43 11 7 61 the current trends of the Information Technology industry.

RESEARCH ACTIVITIES Student statistics AREA OF STUDY TOTAL Grants received Bachelor of Business Information Name AND Description of Name of Amount Technology (BBIT) 662 Grant recipient received Bachelor of Science in Informatics & SYSPRO Research Grant Prof. Ismail Computer Science (ICS) 449 Ateya USD Bachelor of Science in and Prof. 34,610 Telecommunications 86 Reuben Master of Science in Information Marwanga Technology (MSIT) 35 Regional Scholarship & Master of Science in Computing & Innovation Fund (RSIF): Information Systems (MSIS) 7 World Bank through PASET awarded a four- Danny USD year PhD Scholarship at Nyatuka 80,000 the University of Gaston Berger, Senegal.

DAAD In-country Derdus USD 4640 scholarship Kenga

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 93 Name & Description of Grant Amount Name of Recipient Received PhD Grant Awarded by the South Danny Nyatuka USD 2,752 African National Research Fund Esther Khakata, Elizabeth Wamicha, Roent USD 9,000 to SU Staff Development Fund Ombasa, Conrad Ojiambo, Allan Omondi, Henry USD 14,446 Muchiri and Danny Nyatuka. each National Research Fund: NRF PhD Henry Muchiri USD 11,034 Grant

Publications Authors & Co-authors Publication Title Alaka, B. and Ateya, I. L. A Q-Learning Model for Cognitive Behavioural Therapy of Insomnia Patients. (2018) Strathmore University Research and Innovation Conference.

Ateya, I, Ondimu, K Tackling Data Related Challenges in Healthcare Process Mining using Visual Muketsa, G. M. and Omieno Analytics. International Journal of Computing Technology, 5(10), 125-132.

Ateya, I., Ondimu, K., A Situational Method for Healthcare Business Process Improvement. Muketsa, G. M. and Omieno, International Journal of Research in Engineering Technology, 7(10). K. K. Predicting Student Performance Using Data on Internet Technology Usage Khakata, E., Omwenga, V. Behavioural Patterns. International Journal of Scientific Research in Computer and Msanjila, S. Science, Engineering and Information Technology, 3(1). Maingi, N., Ateya, I. L. and Disease Modelling and Analysis using Artificial Intelligence Techniques. Mwau, M. Strathmore University Research and Innovation Conference. The Effect of Cloud Workload Consolidation on Cloud Energy Consumption Mosoti , D., Omwenga, V. and Performance in Multi-Tenant Cloud Infrastructure. International Journal of and Ogao, P. Computer Applications (IJCA), 181(37), 47-53. Human Gait Indicators of Carrying a Concealed Firearm: Skeletal Tracking and Muchiri, H., Ateya, I. and Data Mining Approach. International Journal of Scientific Research in Computer Wanyembi, G. Science, Engineering and Information Technology, 3(8), 368-383. The need for Marker-Less Computer Vision Techniques for Human Gait Analysis Muchiri, H., Ateya, I. and on Video Surveillance to Detect Concealed Firearms. International Journal of Wanyembi, G Computer (IJC), 29(1), 107-118. A Hybrid Filter/Wrapper Method for Feature Selection for Computer Worm Ochieng’, N., Ateya, I. and Detection using Darknet Traffic.International Journal of Computer Applications Mwangi, W (IJCA), 180(44), 12-17 Omondi, A. and Baraiywo, An Organ Donation and Receipt System beyond Pair-Wise Matching of Patients. H. K. Strathmore University Research and Innovation Conference. Omondi, A. and Bongo, B. A System Development Methodology Guidance Tool for Supervision of IT K. Projects. Strathmore University Research and Innovation Conference. A timetable system for institution of higher learning: Case study Strathmore Omondi, A. and Katunge, J. University. International Journal of Research Studies in Science, Engineering, N. and Mundama, B. and Technology, 5(12), 1-3. Towards High-Impact Community-Based Projects through Data-Driven Omondi, A. and Muathe, C. Monitoring: Case Study Community Service Center Strathmore University. N. Strathmore University Research and Innovation Conference. An Android based Information System for Cargo Delivery. International Journal Omondi, A. and Ngugi, J. R. of Computer Applications, 180(33), 1-5. Selection Variation for Improved Throughput and Accuracy of Monte Carlo Omondi, A., Ateya, I. and Tree Search Algorithm. International Journal of Computer and Information Wanyembi, G. Technology, 7(6), 286-294. Omondi, A., Ateya, I. and Scalability and Nonlinear Performance Tuning in Storage Servers. International Wanyembi, G. Journal of Research Studies in Science, Engineering and Technology, 5(9), 7-18. Addressing the Complex and Dynamic Nature of Technology Assimilation Shabaya, P., Ateya, I. L. and through Dynamic Modelling. Strathmore University Research and Innovation Wanyembi. G. W. Conference.

94 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Shibwabo, B. and Jaffer, F. Integrated Paperless Receipts for Shoppers. Journal of Systems Integration, M. 9(3), 34-42. Shibwabo, B. and Munene A Mobile-based Tea Farming Information System. International Journal of K. N. Computer Applications (IJCA), 179(19), 37-44. Shibwabo, B. and Munene An Android-based Order Placement System for Restaurants. International T. G. Journal of Computer Applications (IJCA), 180(21), 18-24.

Research events attended Attendee Event description Dr. Bernard Shibwabo, Allan Omondi, Strathmore Research and Innovation Conference: Taking place at Henry Muchiri, Danny Nyatuka and Strathmore University from 29th October to 2nd November Patrick Shabaya Daniel Machanje and Dr. Joseph Orero International Conference on Information Processing and Management of Uncertainty in Knowledge-Based Systems (IPMU) 11th to 15th June. Stephen Obonyo and Dr. Joseph Orero. 10th International Joint Conference on Computational Intelligence Dr. Ozianyi, Eunice Manyasi and Sharon Research Meeting for Kenya- South Africa joint NRF Grant Mugambi James Njihia and Patrick Shabaya. Academic Writing Workshop 13th to 16th August James Njihia Research Infrastructure Support: This event, which took place in Strathmore University on 7th September co-organised by @iLabAfrica and KENET.

International collaborations Student exchange programme The Faculty hosted seven students from KTH (Kungliga Tekniska Högskola) Royal Institute of Technology, Sweden, from April to July. Visualisation Studio VI at KTH Prof. In April, Prof. Thuresson, the manager of the Visualisation Studio VI at Björn Thuresson KTH gave a lecture on project courses, augmented reality and virtual reality.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 95 SBS

STRATHMORE UNIVERSITY BUSINESS SCHOOL

MISSION To serve society by developing virtuous leaders through generation and dissemination of business and management knowledge that positively impacts Africa.

VISION To be a premier school of business and management promoting high quality of life in Africa.

96 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Executive education Total Executive Education 652 Competition Policy 11 Investing in Agribusiness 23 Owner Manager Program 24 Program for Management Development 31 Women in Leadership 31 Advanced Management Program 22 African Sustainability Leadership 10 Programme AGCO Agribusiness Qualification 20 Program Behavioural Economics Program 8 Community Economic Development 7 Program Dairy Investors Program 25 Enterprise Development Program 127 Financing Agribusiness Value Chains 26 Program Leading High Performing Health 29 DR. GEORGE NJENGA Organizations EXECUTIVE DEAN, STRATHMORE UNIVERSITY Leading the Board 15 BUSINESS SCHOOL Managing Healthcare Business 28 New Managers Leadership Program 63 Staff statistics Private Equity and Venture Capital 10 Faculty Faculty Administration Public Policy Executive Program 32 (Full Time) (Part Time) Total Public Private Partnerships Executive 16 Program 39 80 144 263 Senior Manager Leadership Program 32 Sustainable Investment in Agribusiness 8 The Effective Director Masterclass 16 Student statistics The Effective Director 13 Area of study Total Women Directors Leadership Summit 25

Bachelor of Commerce 1901 Collaborations Master of Business Administration 200 Number of Partnerships 60 Master of Business Administration in Healthcare Management 117 Key activities Master of Commerce 108 Activity Description Strathmore University Business Master of Science in Development 114 School partnered Liquid Finance Data Analytics Telecom to launch a new data Master of Public Policy and Centre launch analytics centre focused on Management 101 data-driven research and Master of Business Administration practices for African businesses. (Modular) 75 This accreditation will enable Accreditation for the students of the programme Masters of Management in Agribusiness 66 Membership of to apply for individual Master in Public Policy and the Chartered membership at the institute Management (Modular) 31 Institute of and upon the successful Development completion they can apply for PhD Program in Business Management 20 Finance the Chartered Development Finance Analyst. Doctor of Philosophy- SBS 2 Pre-Doctoral Workshop 17

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 97 Activity Description Tech and Entrepreneurship The business school hosted panel discussions on the role of technology- town hall with Strive Masiyiwa focused entrepreneurship in creating jobs and engendering inclusive growth. World Climate Simulation This role-playing exercise of the UN climate-change negotiations for groups Exercise that used an interactive computer model to rapidly analyse the results of the mock-negotiations during the event. Journalists policy briefing The briefing aimed to strengthen reporting skills on key sub-sectors that boost the economy. Inaugural Adebisi Babatunde The inaugural lecture was held in honour of Prof. Adebisi Babatunde Thomas Thomas Memorial Lecture on to commemorate International Women’s Day. Inter-Generation Dialogue Pioneers Leadership in This is a Digital Learning Programme for banks to realise sustainable growth Financial Inclusion Programme by providing participants with the opportunity to learn best practices in leadership whilst building their management skills. AGCO Agribusiness This is a two-year Kenya-South Africa programme where participants take on Qualification Programme junior management roles within AGCO in various countries in Africa. Pioneer Class The Business Leaders Forum This forum is targeted to initiate and effect cooperative and collaborative leadership styles among top senior business executives across public and private sectors. Agribusiness Summit The Strathmore University Business School hold a convergence of Agribusiness Investors across East Africa where investors discussed trends and pace-setters in the sector enabling the investors move a notch higher in their respective investments. YALE & Strathmore The Strathmore, Yale University collaboration is to expand students exchange partnership programmes across the academic pace-setter institutions. Global CEO Africa Programme A programme developed for top-tier business leaders to provide them with Launch added skills that promote further growth in their respective organisations. SBS host Nobel Laureate Prof. Prof. Yunus held a public lecture on the dangers of a dependency generation. Yunus Muhammad Universal Healthcare Coverage Strathmore University Business School’s Institute of Healthcare Management Forum in collaboration with E&K Consulting held its inaugural Health Exchange stakeholder convention. Inaugural Public Private The first Public Private Partnerships (PPPs) executive programme was Partnerships executive successfully held on April 11th - 13th, 2018. It covered aspects of the concept programme and rationale for PPPs, the legal and regulatory framework for PPPs, the PPP project life cycle, project finance and risk management. Corporate Social The students did a clean-up exercise, played a friendly match with the Responsibility by the Master Women’s Saving Group and bonded with the residents to understand issues of Science in Development affecting the community, with the aim of developing sustainable projects to Finance (MDF) students improve the livelihood of Gatwekera community members. The Fuel Freedom Foundation This was focused on providing solutions by using proven scalable business and Strathmore Business approaches to provide economic opportunities to millions of Africans. School Graduation of inaugural During the student training STEP students formed teams and engaged in the class of Student Training for start-up process of a real micro-business. They proceeded through the entire Entrepreneurial Promotion entrepreneurial process from preparing to launching and managing a real (STEP) business. Impact Business Leaders The programme trains 25 East African participants with 5-15 years’ experience Program in social entrepreneurship, giving them a pragmatic outlook on building and sustaining innovative businesses and working with investors. The 6th Annual SME The 6th annual SME conference attracted over 300 entrepreneurs from both Conference and Expo public and private sectors. UK-Kenya Business Forum Strathmore University hosted the UK Prime Minister Theresa May at the Kenya-UK Business Forum held at Strathmore University Business School. Being the first UK Prime Minister to have visited the country in 30 years, the visit was not only of great significance to the University but also to the country at large.

98 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Launch of the Strathmore This initiative will ensure that the institution develops leaders who are able to Leadership Academy create a culture that keeps the University focused on its values. The formation of the Leadership Academy was informed by a culture audit that sought to assess the current culture from the internal stakeholders’ point of view. Strathmore University This summit was designed to steer discussions on how to leverage on the Business School HR SUMMIT opportunities that the 4th industrial revolution presents. 2nd Governance, Risk and The summit covered emerging trends and challenges in governance, Compliance Summit regulations, compliance, audit and IT risks related to cyber security. SMEs Presidential Round Strathmore University hosted the SMEs Presidential Round Table in Table recognition of the central role SMEs play in the economy. The SMEs had an opportunity to discuss the opportunities and challenges, and develop solutions to help the sector grow. They had an opportunity to make presentations to H.E President Uhuru Kenyatta, who was the guest of honour. Transform Kenya Forum on Transform Kenya Forum was organised with the aim of influencing new ways Food Security of doing things by giving Kenyans the chance to contribute to debates on national development and in this case to spur conversations on food security. Global Business School Strathmore University Business School co-hosted the Global Business Network’s 13th Annual Network that aims to transform the traditional sector by educating Conference entrepreneurial leaders to drive systemic change. Accountants’ Digest Launch Accounting Research Group organised the Accountants’ Digest which contains a series of thought leadership articles on accounting and related areas.

RESEARCH ACTIVITIES Grants received Name and description of grant Name of recipient Amount received Human Resources for Health: Awarded by USAID Prof. Gilbert Kokwaro USD 730,000 Socio Technical Approaches to Road Safety: Awarded by Prof. Gilbert Kokwaro USD 299,634 the National Institute for Health Research (NIHR/UK) Understanding the Impact of Innovations in the Regulation Dr. Francis Wafula KES 42,745,265.40 of Kenya’s Health Facilities Project: Awarded by the Medical Research Council (MRC)

Publications Author(s) Publication title Kinyanjui, J. N., Juma, D., Njeru, Influence of legal and ethical CSR strategy on performance of public A., and Onyango, J. universities in Kenya. The Strategic Journal of Business & Change Management, 5(4), 2059-2068. Kinyanjui, J. N., Juma, D., Njeru, Influence of community outreach as a CSR strategy for organizational A., and Onyango, J. performance: a review of selected public universities in Kenya. The Strategic Journal of Business & Change Management, 5(4), 2048-2058. Kokwaro, G. McIlroy R. C., Plant K. Who is responsible for global road safety? A cross-cultural comparison of A., Hoque M. S., Jianping, W., Vũ Actor Maps. Accident Analysis and Prevention. N.H., and Stanton N. A. (2018). Mathuva, D. M. Transcending Homophily: Navigating Institutional Change in Ethnically Fragmented Societies. Academy of Management Annual Meeting Proceedings, 2018(1). Mudida, R. and Gil-Alana, L. The Growth Rate Series in Kenya: Evidence of Non-Linearities and Factors behind the Slow Growth. International Journal of Finance and Economics, 23(2), 111-121. Mudida, R. and Mendi, P. The effect on Innovation of Beginning Informal: Empirical Evidence from Kenya. Technology Forecasting and Social Change, 131, 326-335. Ngoye, B., Sierra, V., and Ysa, T. Assessing Performance-Use Preferences Through an Institutional Logics Lens. International Journal of Public Sector Management. Ngoye, B., Sierra, V., and Ysa, T. Different Shades of Grey: An Experimental Study on How Institutional Logics Influence Organizational Actor Perception and Judgment.Public Administration Review.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 99 Author(s) Publication title Ngoye, B., Sierra, V., Ysa, T. and Priming in Behavioral Public Administration: Methodological and Practical Awan, S. Considerations for Research and Scholarship. International Public Management Journal.

Njuguna, J. The Influence of County-of-Origin on Consumer Behaviour towards Foreign Clothing Brand in Nairobi, Kenya. Researchfora 21st International Conference. Oluoch-Aridi, J., Smith-Oka, V., Exploring mistreatment of women during childbirth in a peri-urban setting Milan, E. and Dowd, R. in Kenya: experiences and perceptions of women and healthcare providers. Reproductive Health, 15(1):209. doi: 10.1186/s12978-018-0643-z. Robert, W. and Njuguna, J. The Influence of Relationship Marketing on Customer Loyalty in the Telecommunication Industry in Dar es Salaam Tanzania. Proceedings of 2018 Strathmore University Research and Innovation Conference. Tama, E., Barasa, E. W., Molyneux, Examining the implementation of the Free maternity services policy in S., Waweru, E., Tsofa, B., and Kenya: A mixed methods process evaluation. International Journal of Chuma, J. Health Policy and Management, 7(7), 603-613. Wanjala, B. Solidarity Economy and Prospects for Protecting Women’s Livelihoods. Journal on African Women’s Experiences.

Books and book chapters Author Publication title Kiraka, R and Ngunjiri, I. W Entrepreneurship and Business Communication. Focus Publishers Ltd. Kokwaro, G. Boards and Good Governance. In M. Counte, D. West, B. Ramirez, and B. Aaronson, (Eds.), The Global Healthcare Manager: Competencies, Concepts and Skills. Mudida, R., Ngene, J. and Financial Management (2nd Ed). Focus Publishers Ltd. Njuguna, T.

Research events attended Attendee Event description Prof. Robert Mudida. The Future of Africa-Europe Relationship: A Multi-Stakeholder Perspective: Luiss University, Rome. Prof. Robert Mudida Conference on the Construction of Public Office and the Pursuit of Integrity: Organised by the University of Warwick, the event was held at the British Institute of Eastern Africa in London. Dr. James Njuguna International Conference on Social Science and Economics (ICSSE): ICSSE was a forum for the presentation of novel and fundamental advances in the fields of social science and economics. Dr. James Njuguna, Dr. 2018 Strathmore University Research and Innovation Conference: This event Stella Nyongesa, Dr. Joseph was organised by the Research Services Office of Strathmore University. Onyango Dr. Stella Nyongesa. African Doctoral Academy: At Stellenbosch University, South Africa. Dr. Stella Nyongesa International Academy of African Business Development Conference: an annual conference that brings together scholars to present research papers on business development, improve their research knowledge and skills, network and share experiences. Dr. Stella Nyongesa Doctoral Supervisors Workshop: Organised in collaboration with Stellenbosch University. It covered a range of topics, like emerging trends in doctoral research and supervision models and styles. Tabitha Njuguna Econometrics Methodology Workshop. It was organised to equip researchers with econometrics skills. Tabitha Njuguna Training of Trainers – SME Management Solutions. It was organised by the International Finance Corporation and Strathmore University. Tabitha Njuguna The Frontiers of Research in Private Enterprise Development in Low Income Countries. This event was organised by Private Enterprise Development in Low Income Countries (PEDL) and New York University in Abu Dhabi.

100 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Dr. Joseph Onyango First Kenya Clinical Officers Scientific Symposium Nairobi: Organised by the Kenya Clinical Association “Entrepreneurship and Management: Creating a Balance Between Entrepreneurial Aspects and Social Responsibility.” Dr. Joseph Onyango 6th Annual SME Conference and Expo: Enhancing SME Sustainability Through Innovation. Dr. Joseph Onyango 38th Annual Scientific Conference of Pharmaceutical Society of Kenya: The Missing Link in the Attainment of Universal Health Coverage. Dr. Joseph Onyango 26th Annual Scientific Conference of Kenya Ear, Nose and Throat: Healthcare Leadership, Management and Governance. Eric Tama The 5th Global Symposium on Health Systems Research: organised by Health Systems Global and themed “Front Staffs’ Perceptions of Regulatory Innovations.” Dr. David Mathuva 2nd East Africa Governance, Risk & Compliance Summit (GRC). It was the second GRC summit organised for the financial services providers.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 101 SERC

STRATHMORE ENERGY RESEARCH CENTRE

MISSION AND VISION To be the institution of choice for research, training and project development for renewable energies and energy efficiency in East Africa.

102 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Key activities Activity Summary: Renewable This workshop aimed to lead the Energy E- conversation among multiple Waste and stakeholders involved in existing Partnership e-waste streams on sustainable Opportunities e-waste management. Workshop Powering Powering Jobs is the first Jobs survey comprehensive jobs survey of the decentralized renewable energy (DRE) sector -- solar lighting, solar home systems, mini-grids and productive use. The survey results will be used to build a global campaign to mobilize resources to ensure that DRE companies and the sector overall have the human capital and workforce needed to achieve Sustainable Development Goal 7. Launch of SERC partnered with EU Civil Solar Water Protection and Humanitarian Aid Pumping (ECHO), Oxfam, International GEOFFREY RONOH and Biogas Organization for Migration (IOM) DIRECTOR, SERC Training kit and Norwegian Refugee Council (NRC) to roll out a course on solar water pumping. The newly Staff statistics launched course will provide hands-on training and foster Staff further dialogue on best practices for effective solar water pumping in East Africa. Joint SERC/ A one-day workshop on 10 UC Berkeley decentralized energy solutions Conference for East Africa and the role of research. Student statistics KOSAP Conducted a training to 31 county Training representatives on Sustainable Area of study Total Energy Training for Policy Makers Tier1/Tier2 Solar PV Technical Training and Solar PV T1/T2 Training. The of Technicians 84 training is part of the Kenya Off grid Solar Access Project (KOSAP) Women’s Tier1/Tier2 Solar PV Technical funded by World Bank to provide Training of Technicians 19 access to clean energy to 14 Tier3 Hybrid Training 5 underserved counties in Kenya. ILO Somalia Conducted a training in Somalia Grid Tie Training 74 Training for the International Labor Organization (ILO) aimed at Solar Water Pumping 10 establishing a cadre of skilled Executive Course Training professionals in the Somali solar 31 market. Power for All In collaboration with Power for Focus Group All and Funded by the Schneider Discussion: Electric this event featured the discussion of the findings of the Power for All jobs campaign that was conducted targeting renewable energy companies in Kenya. PRE-LEAP- Workshop featured discussions RE Workshop: about the research and capacity- building agenda of the PRE- LEAP-RE project at Strathmore University.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 103 RESEARCH ACTIVITIES Grants received Name and description of grant Name of recipient Amount received Newton Fund Grant: Awarded by the British Council: Enhanced Food Security and Afforestation through Novel Prof. Izael Da Silva USD 66,338 Approaches to Irrigation GCRF- LIEREA Grant: Awarded by GCRF- UK Longitudinal Prof. Izael Da Silva USD 66,338 Impact Evaluation of Rural Electrification in Africa (LIEREA) Powering Agriculture Grant: Awarded by GIZ to support an Prof. Izael Da Silva USD 30,436 energy audit for the dairy sector in Kenya PRE-LEAP-RE Grant: Themed - Preparing for Long Term European Union-African Union Partnership on Renewable Prof. Izael Da Silva USD 54,000 Energy” (PRE-LEAP-RE) project

Publications Author Publication title Da Silva, I., Maranga, I., Performance Evaluation of the 600kW Grid-Tied Solar Photovoltaic System in Wambugu, A., Njogu, Strathmore University. Proceedings of the Strathmore University Research and M. and Nyarotso, C. Innovation Conference. Da Silva, I., Maranga, I., Toward the Development of Small Hydro Plants in Kenya: The Impact of a Training and Odera, S. Course at SERC. Proceedings of the Hydro 2018 Conference. Wambugu, A. et al., Guide for Application of Standards for Rural Electrification in Africa (Second Edition). (2018). Abidjan, Côte d’Ivoire: African Eletrotechnical Standardization Commission (AFSEC) Secretariat. http://www.afsec-africa.org/Portals/15/AFSEC_Guide2018_Rural_ Electrification_Africa_WEB.pdf

Research events attended Attendee Event and description Ignatius Maranga, Thomas Ministry of Energy Conference and Exhibition: organised by the Ministry of Energy, at Bundi, Patrick Mwanzia the KICC Nairobi. and Hope Nyambura Sarah Odera UN Symposium on Food Energy Water Nexus: Organised by the United Nations Department of Economic and Social Affairs (UNDESA) Sarah Odera, Anne Newton Training at the University of Edinburgh Newton Grant. Multi-disciplinary Wacera Wambugu training on food energy water nexus held in Edinburgh UK Sarah Odera, Anne Low Carbon Energy Development Network Meeting held by the Low Carbon Energy Wacera Wambugu Development Network in Loughborough UK. Anne Wacera Wambugu, Future Energy East Africa Forum organized by Spintelligent and held in Kenya, Ignatius Maranga featured discussions on Energy in East Africa. Ignatius Maranga, Thomas Kabarak University Conference held in Kenya. Bundi, Patrick Mwanzia Thomas Bundi, Ignatius Schneider Electric Training on Distributed Energy Resources, organised by Schneider Maranga Electric at their headquarters in Nairobi. Ignatius Maranga IEEE Region 8 Students and Young Professionals Conference was held at the Universidade, Portugal. Anne Wacera Wambugu Off Grid Solar Conference held in Hong Kong Anne Wacera Wambugu Energy and Society Masterclass: Durham Energy Institute in Durham University, UK. Anne Wacera Wambugu GCRF Workshop held at Strathclyde University, training on how to apply for GCRF grants in Strathclyde, UK. Anne Wacera Wambugu African Electrotechnical Standardization Commission (AFSEC) TC 82 Meeting held in Rwanda Anne Wacera Wambugu PRE-LEAP-RE Inception Workshop: Organised by LGI Consulting which was held in Belgium Anne Wacera Wambugu AFSEC Smart Grid Conference which was held in Rwanda. Anne Wacera Wambugu Building and Regulating a Sustainable Energy Future Conference: Organised and held by the Bankers Association of Malawi. Anne Wacera Wambugu PRE-LEAP-RE Workshop: LGI Consulting, this event featured presentations about the progress of the PRE-LEAP-RE research and capacity-building agenda in Brussels, Belgium.

104 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 105 @ILAB AFRICA RESEARCH AND INNOVATION CENTRE

MISSION To provide an environment that promotes technological innovation and provides business support structures and policy direction to harness the potential of ICT as a genuine tool for sustainable development.

VISION To be a Centre of Excellence in Research and Innovation in ICT for Development in Africa.

106 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Key activities Activity Description Kids and Teens These were three school holiday Holiday Boot ICT training boot camps for Camp children and teenagers from the age of 6 - 18 years held in August and November. Advanced Excel This was a hands-on training in Workshop advanced excel analysis held on 24th – 26th October. Certified Ethical A hands on training in ethical Hacker computer hacking. Zencash The workshop was an Secure Nodes introduction to blockchain Workshop platform by Horizen and was held on the 8th & 9th June. Africa HackOn A Cybersecurity Conference which was attended primarily by hackers and individuals trained in software programming and exploited the intricacies of computer networks. DR. JOSEPH SEVILLA Pycon A conference for Python DIRECTOR, @ILAB AFRICA Conference enthusiasts, a programming language. Python Conferences (PyCons) are hosted globally, Staff statistics organized by volunteers from local Python communities. Faculty Faculty Administration (Full Time) (Part Time) Computer This Computer Science Science Workshop for secondary school Workshop. teachers focusing on Web Development was held on 26th 56 20 10 to 28th November. Nairobi Tech The three-day conference Week (NTW) was done with the intention Trainers Program 11 Research 1 of bringing all stakeholders Managers Fellow 15 in the ICT ecosystem in one space to foster generation and sharing of ideas and Student statistics knowledge technology-related topics. Included in the program Area of study Total were 6 Pre-NTW events; 11 Executive Education Certified Mobile workshops, 12 incredible panels Technology 22 and a Hackathon hosted by AngelHack where Microsoft, Executive Education Saturday Boot Visa and Facebook were Camp 42 amongst the sponsors. Executive Education Holiday Boot Standard A program that supports Camp 84 Chartered female-led entrepreneurial Executive Education Digital Marketing Women in Tech teams by providing them with 6 Demo Day training, mentorship and seed IT Security Certified Ethical Hacker and Award funding. In 2018, 5 teams were 17 Ceremony selected and awarded a total of IT Security ZenCash Secure Nodes $10,000 seed funding to invest Workshop 20 in their businesses. Digital Learning CS4Teachers Workshop 44 Data Science Certificate in Data Science 98

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 107 Activity Description Pangea Info Session 16th This event was held to create awareness on Pangea and its collaboration with February 2018 @iBizAfrica, a subsidiary of @iLabAfrica. Pangea is an accelerator program and an investment platform that matches African start-ups with investors. We create an enabling environment, where African entrepreneurs can develop competence, access relevant network and capital in order to reach their full potential. Pangea Accelerator NIW 24 start-ups presented their businesses at the Pangea Accelerator Selection side event - Creating the Day. Next Generation of African Entrepreneurs Pangea Accelerator This was a networking cocktail for mentors to meet, mingle and share their Selection Day experience & expertise with the Pangea start-ups. Pangea Accelerator mentor @iBizAfrica hosted Kamran Elahian, a world renowned philanthropist, networking session investor and entrepreneur on 5th March 2018. He gave a public lecture about iTechpreneurship: Creating Chaos to Avoid Chaos, to @iBizAfrica incubatees, Strathmore University students and staff. Cut & Paste Round Table by @iLabAfrica partnered with Digilab Politecnico di Bari in March 2018 to discuss Digilab Politecnico di Bari alternative technologies to integrate ICT. MEST Africa Information @iBizAfrica hosted a MEST info session in March 2018. The aim of this session Session was to inform participants about how they can become globally successful software entrepreneurs. MEST Africa is a Pan-African training program, seed fund, incubator and tech hub that recruits aspiring entrepreneurs from Africa’s leading tech markets. SOMO Project Event A pitching event sponsored by SOMO was held on 5th May 2018. 4 entrepreneurs pitched their businesses. There was also an opportunity for entrepreneurs to network amongst themselves. Pitch Fridays Pitch Friday is a monthly event held every last Friday of the month. Entrepreneurs pitch their business ideas before an experienced panel of mentors in order to be selected for incubation. Weather Weekend - IoT for Internet of Things is a Research and Innovation Centre under @iLabAfrica Agriculture which focuses on developments in the emerging IoT, wireless networks and Big Data space. This event was meant to provide knowledge on the application of IoT in Agriculture by start-ups. 10th Connected Kenya @iLabAfrica representatives attended the summit as recognised industry Summit 2018 stakeholders and were amongst over 1,000 ICT innovators, corporate executives, financiers and key policy makers in the regional ICT industry. Industry 4.0 with A.I. and Conference on Industrial Revolution 4.0 and the era of robotics - showcase Blockchain from different companies. DAAD Conference Presentation on Disaster Prediction and Management Research Project at Umma University – Kajiado. Dynamic Spectrum Access Partner Conference on Dynamic Spectrum Project in Glasgow, Scotland, UK. Conference Defining the IoT Landscape IoT Workshop on use cases, policy, business and technology at the Huawei HQ Today and Tomorrow Kenya. Lake Region Economic Block Disaster Prediction Research Presentation to the LREB Team Conference Motorola Training Bootcamp Motorola-funded training for selected STEM undergraduate students CIO East Africa IoT and AI A CIO/CTO event showcasing the current developments in the region on IoT Summit and AI. IoT and Cybersecurity with A workshop building on the Fundamentals of IoT and Cybersecurity with Python Python Language. MIT Open Mic Africa (OMA) @iBizAfrica hosted the MIT Open Mic Africa Summit, an annual summit that Summit 2018 celebrates the goals championed by the Legatum center in MIT alongside the MasterCard Foundation. The event was marked with vision talks, short pitches and the promotion of the ten finalists in the running for the Zambezi prize. Introduction to Anzisha Q On 21st June 2018, @iLabAfrica had an info session with Natsuno Shinagawa on & A Anzisha Prize, a joint program of African Leadership Academy and MasterCard Foundation.

108 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Fireside chat with Manju On 20th September 2018 @iBizAfrica hosted Basal Banjul-SAP VP Global Bansal Programs and Head of Startup Focus. The aim was to meet start-ups to learn more and share how they could partner with SAP. Business Focus in Kenya This was a filming event at @iBizAfrica Strathmore University to showcase Kenya’s business opportunities to Danish students. Pangea Shelter Tech Launch @iBizAfrica held the Pangea Shelter Tech Launch on 6th November 2018. This was in collaboration with Habitat for Humanity’s Terwilliger Center for Innovation in Shelter and BDO East Africa. Standard Chartered Women In September 2018, Standard Chartered in partnership with @iBizAfrica in Tech Launch launched the start of a search for a second cohort of women-led technology start-ups which would see five entrepreneurs win Sh1 million each. Standard Chartered Women @iBizAfrica in collaboration with Standard Chartered launched the second in Tech Selection Day cohort of women-led technology start-ups. After 3 months of a rigorous process, 40 teams presented the ideas of which only 10 made it to the finals and are currently undergoing incubation @iBizAfrica. WaziHub IoT Bootcamp A five-day IoT training on using the WaziHub platform to come up with solutions for local challenges using IoT. H2020 TWIGA- Project Kick- A three-day Technical planning meeting to Kick Off the TWIGA Project with off Conference Participating Partners. H2020 TWIGA- Project Kick- A three-day Technical planning meeting to Kick Off the TWIGA Project with off Conference participating partners. H2020 TWIGA- Developer A two-day developers day workshop was held on the Hydrologic Platform, Workshop Tools, Framework and Work Plan for 2018. mHealth4Afrika-Technical mHealth4Afrika Alpha System Validation meeting was held in Bungoma Planning Meeting County. WAZIHUB IoT Bootcamp Training of teams on IoT leveraging Low Power Wide Area Networks - Long Range technology for the WaziHub open ecosystem and platform to grow IoT entrepreneurial ideas and collaboration.

RESEARCH ACTIVITIES Grants received Name and description of grant Name of recipient Amount received Bernard Chiira Women in Tech: Awarded by Standard Chartered Bank Kenya USD 150,000 Linda Kwamboka IDEA Foundation Grant: Awarded by IDEA Foundation Bernard Chiira USD 39,520 Pangea Accelerator Program: Awarded by Pangea Funds AS Bernard Chiira USD 10,804 KENIA Innovation Commercialisation Agency Grant: Awarded Bernard Chiira USD 92,892 by Kenya National Innovation Agency KENIA Pangea Shelter Tech Accelerator Program: Awarded by Bernard Chiira USD 17,511 Pangea Funds AS KENET Mini Grant on Distributed Ledgers: Awarded by Kenya Dr. Joseph Sevilla USD 15,000 education Network Google Computer Science Educator Professional Dr. Joseph Sevilla, USD 23,008 Development: Awarded by Google Regina Nkonge Dr. Joseph Sevilla, Mobile Learning Application and Mini Plastic Bags Mobile Regina Nkonge, and USD 9,870 Course: Awarded by UNEP Imelda Mueni Dr. Joseph Sevilla, H2020-WAZIHUB Research Grants: Awarded by European Emmanuel Kweyu, and EUR 75,500 Commission Margaret Njenga

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 109 Research events attended Attendee Event Title and Description Tracy Weru 2018 Strathmore University Research and Innovation Conference: Organised by the Research Services Office at Strathmore University. It featured presentations by researchers from both within and outside the University in various fields. Tracy Weru Chrome Dev Summit: by Google. This summit featured an exploration of modern web experiences. Richard Otolo and Eunice IBM Blockchain Developer Workshop: It was organised by IBM to provide a deep Maingi dive into developing blockchain applications on the Hyperledger platform. Leonard Mabele DAAD Conference: Umma University in Kajiado. It was organised by DAAD Emmanuel Kweyu in collaboration with the Communications Authority of Kenya. Leonard and Emmanuel made a presentation on their disaster prediction and management research project. Sharon Anyanga SciDataCon Botswana by the Botswana Open Science and Open Data Forum. It featured presentations on the frontiers of data in research. Imelda Mueni Action for Nutrition and Health (ANH) Academy Week: by IMMANA The objective was to demonstrate finished or nearly finished metrics, tools and methods to an audience of potential users. Dr. John Olukuru International Actuarial Conference: organised by the German Actuarial Association in conjunction with the International Actuarial Association. Dr. Joseph Sevilla Horizon 2020 Twiga Kick-Off Meeting: It featured discussions with participating partners on how to kick off the TWIGA Project. Dr. Joseph Sevilla CIO100 2018: The latest instalment of an annual series from 29th November to 1st December 2018. Dr. Joseph Sevilla, Engineering and Physical Sciences Research Council (EPSRC): It featured Leonard Mabele discussions on enabling affordable internet access with dynamic spectrum management and software defined radio. Bernard Chiira Venture Capital Unlocked: A specialised course in start-up venture funding, by Linda Kwamboka Stanford University to support @iBizAfrica set up a pre-seed stage venture fund targeting start-ups focused on addressing relevant problems for Kenya through leveraging innovation and technology. Bernard Chiira PAUWES Research-2-Practice Forum: To showcase the work done at @iBizAfrica. Bernard Chiira Sahara Sparks 2018 and AfriLabs Annual Gathering 2018: organised by Sahara Sparks and AfriLabs. Leonard Mabele, Workshop on Defining the IoT Landscape Today and Tomorrow: explored use Getrude Gichuhi cases, policy, business and technology issues related to IoT organised by ISOC Kenya Chapter at the Huawei Kenya headquarters. Leonard Mabele Leonard made a presentation on disaster prediction at the Lake Region Economic Block Conference. Leonard Mabele CIO East Africa IoT and AI Summit: this event showcased the current Dr. Joseph Sevilla developments in the region in the area of IoT and AI.

Publications Author Publication title Weru, T. Promoting Women ICT Start-Ups to Accelerate Women’s Economic Empowerment: A Case of Strathmore University - @iBizAfrica. IST-Africa 2018 Conference Proceedings. Mutegi - Kamau, L. and Leveraging Low Power Wide Area Networks for Precision Farming. Proceedings of Mabele, L. the International Conference on Interactive Mobile Communication, Technologies and Learning (IMCL).

110 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 International collaborations Name of Collaborator Description International Telecommunication Union(ITU) A partnership to support the Development of Master’s Curriculum. . Carlos III Madrid University @iLabAfrica collaborated to provide Cybersecurity training for the Master of Science in Information Science Security. University of Strathclyde The partnership is geared towards development of the Spectrum Innovation - Enabling Affordable Internet Access. IST-Africa Institute(Ireland), Nelson Mandela This is a collaboration to promote Maternal Health for Africa University (SA), Chancellor’s College - Malawi Research Project covering four countries. and Gondar University - Ethiopia

TWIGA-H2020 Project H2020 mHealth4Afrika -Research on Maternal Health for Africa. Geo-Weather, IOT and applications development for value addition in Africa. WAZIHUB-H2020 Project Internet of Things (IoT) Research in Action in Africa. Research in Action of IoT applications in Africa. ICT Norway An MOU designed to promote Digital skills and entrepreneurship and innovation ecosystem development. Pangea Accelerator To promote start-up competency, network and capital building. Afrilabs In the areas of innovation and capacity building around hubs and incubators. VC4Africa In the areas of innovation management, venture capital and mentoring. UBI Global University-based incubator ranking and benchmarking.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 111 Strathmore University Financial Statements For the year ended 31 December 2018

11 FINANCIAL STATEMENTS 2018

112 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University General Information For the year ended 31 December 2018

CORPORATE INFORMATION

PRINCIPAL PLACE OF BUSINESS AUDITOR

Strathmore University Deloitte & Touche Ole Sangale Road, Madaraka Certified Public Accountants P.O. Box 59857 – 00200 P. O. Box 40092 - GPO 00100 NAIROBI NAIROBI

BANKERS LAWYERS

Commercial Bank of Africa Limited A F Gross Advocates Industrial Area Branch P.O. Box 57792 – 00200 P.O. Box 30437 – 00100 NAIROBI NAIROBI Nyiha, Mukoma and Equity Bank Limited Advocates Community Branch P.O. Box 28491-00200 P.O. Box 8181 – 00100 NAIROBI NAIROBI Kaplan & Stratton Standard Chartered Bank Kenya Limited Advocates Karen Branch P.O. Box 4011 P.O. Box 24601 – 00502 NAIROBI NAIROBI Ochieng, Oduol, Kibet & Barclays Bank of Kenya Limited Ohaga Advocates PO Box 43170-00100, Barclays Plaza Branch NAIROBI P.O. Box 46661 – 00200 NAIROBI

Citibank Kenya MANAGEMENT BOARD Citibank House, Upper Hill Prof. John Odhiambo P.O. Box 30711 – 01200 Vice Chancellor - Chair NAIROBI Dr. Vincent Ogutu VC Designate (appointed on 1/5/2018) Co-operative Bank of Kenya Limited Upper Hill Branch Dr. Elizabeth Gachenga DVC Academic Affairs P.O. Box 30415 – 00100 Prof. Izael Da Silva DVC Research and Innovation NAIROBI Dr. Edward Mungai DVC Planning and Development I & M Bank Limited (appointed on 15/10/2018) Industrial Area Branch Mr. Anthony Kahindi P.O. Box 30238 – 00100 University Secretary Ms. Dorina Telaide NAIROBI Director Administration Services Mrs Betty Ngala SBM Bank Kenya Director University Relations P.O. Box 34886 – 00100 Mr. Vincent Ndoloka NAIROBI Executive Director Finance

CfC Stanbic Bank Kenya Limited P.O Box 30550 – 00100 NAIROBI

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 113 Strathmore University General Information For the year ended 31 December 2018

REPORT OF THE UNIVERSITY COUNCIL

The University Council present their report together with the audited financial statements of Strathmore University (the “University”) for the year ended 31 December 2018, which disclose its state of affairs.

ACTIVITIES The principal activities of the University continue to be provision of higher education.

FINANCIAL RESULTS FOR THE YEAR The Surplus/ (Deficit) for the year of Shs 12,880,000 2017: Shs (308,000) has been added to accumulated surplus

UNIVERSITY COUNCIL The current members of the Council are as shown on page below.

Mrs. Bernadette Musundi Chair

Dr. Caesar Mwangi Vice Chair

Prof. John Odhiambo Vice Chancellor and Secretary

Mr. Fernando Aizpun Member

Prof Timothy Waema Member

Dr Susan Kibue Member

Mr. David Owino Member

Mrs. Christine Ochieng Member

Ms. Margaret Osure Member

Dr. Vincent Ogutu VC Designate – Ex-Official Member

Dr. Elizabeth Gachenga DVC Academic Affairs – Ex-Official Member

Prof. Izael Da Silva DVC Research and Innovation – Ex-Official Member

Dr. Edward Mungai DVC Planning and Development – Ex-Official Member

Mr. Anthony Kahindi University Secretary – Ex-Official Member

AUDITORS Deloitte & Touche have expressed their willingness to continue in office.

BY ORDER OF THE UNIVERSITY COUNCIL

Professor John Odhiambo Secretary

Nairobi, Kenya

15 May 2019

114 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University General Information For the year ended 31 December 2018

STATEMENT OF UNIVERISTY COUNCIL’S RESPONSIBILITIES

It is the responsibility of the University Council to prepare financial statements for each financial year that give a true and fair view of the financial position of the university as at the end of the financial year and of its profit or loss for that year. The University Council is also responsible for ensuring that the university maintains proper accounting records that are sufficient to show and explain the transactions of the university and disclose, with reasonable accuracy, the financial position of the university. The University Council is also responsible for safeguarding the assets of the university, and for taking reasonable steps for the prevention and detection of fraud and error.

The University Council accepts responsibility for the preparation and presentation of these financial statements in accordance with the International Financial Reporting Standards. They also accept responsibility for:

(i) designing, implementing and maintaining such internal control as they determine necessary to enable the presentation of financial statements that are free from material misstatement, whether due to fraud or error;

(ii) selecting suitable accounting policies and applying them consistently; and

(iii) making accounting estimates and judgements that are reasonable in the circumstances.

Having made an assessment of the university’s ability to continue as a going concern, the University Council is not aware of any material uncertainties related to events or conditions that may cast doubt upon the university’s ability to continue as a going concern.

The University Council acknowledge that the independent audit of the financial statements does not relieve them of their responsibilities.

Approved by the University Council on 15 May 2019 and signed on its behalf by:

Mrs. Bernadette Musundi Mr. David Owino

Chairperson Council Member

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 115 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STRATHMORE UNIVERSITY

Report on the Audit of the Financial Statements

Opinion We have audited the accompanying financial statements of Strathmore University, set out on pages 118 to 160, which comprise the statement of financial position as at 31 December 2018, and the statement of income & expenditure and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the University as at 31 December 2018 and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRSs”).

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the University in accordance with the Institute of Certified Public Accountants of Kenya Code of ethics (ICPAK Code of Ethics), which is consistent with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants, together with other ethical requirements that are relevant to our audit of the financial statements in Kenya, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information The University Council is responsible for the other information. Other information comprises the information included in the Annual Report, but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

University Council responsibility for the financial statements The University Council is responsible for the preparation of the financial statements that give a true and fair view in accordance with International Financial Reporting Standards, and for such internal controls as University Council determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

116 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF STRATHMORE UNIVERSITY (Continued)

University Council responsibility for the financial statements (Continued) The University Council is responsible for the preparation of the financial statements that give a true and fair view in accordance with International Financial Reporting Standards, and for such internal controls as the University Council determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the University Council is responsible for assessing the University’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the University Council either intend to liquidate the University or to cease operations, or have no realistic alternative but to do so. The University Council and those charged with governance are responsible for overseeing the University’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the University’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the University Council. • Conclude on the appropriateness of the University Council’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the University’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the University to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Report on Other Legal and Regulatory Requirements We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Certified Public Accountants (Kenya)

Nairobi, Kenya 15 May 2019 CPA Anne Muraya, Practising certificate No. 1697. Signing partner responsible for the independent audit

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 117 Strathmore University Financial Statements For the year ended 31 December 2018

Statement of profit or loss and other comprehensive income

2018 2017 Notes Shs ‘000 Shs ‘000

Tuition fees 6 2,668,005 2,228,677

Donations 7 59,965 43,400 Capital grants 8 8,394 8,179 Other operating income 9 835,479 677,893

903,838 729,472

3,571,843 2,958,149 Total income

Administrative expenses 10 (3,216,264) (2,561,605) Establishment expenses 11 (295,597) (264,966)

Total expenses (3,511,861) (2,826,571)

Operating surplus 59,982 131,578

Finance costs 12(a) (64,308) (70,072)

Exchange gains /(losses) 12(b) 16,469 (63,475)

Revaluation surplus on investment property 14 737 1,661

Surplus/ (deficit) for the year 12,880 (308)

The notes on pages 122 to 160 are an integral part of these financial statements.

118 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

Statement of financial position 2018 2017 ASSETS NOTES Shs ‘000 Shs ‘000 Non-current assets Property and equipment 13 2,524,299 2,583,392 Investment property 14 103,304 102,567 Prepaid operating leases 15 2,449,411 2,481,422 Intangible assets 16 67,614 68,479 Endowment fund deposits 17 27,633 6,205 Designated funds deposits 18 32,925 17,264

5,205,186 5,259,329 Current assets Inventory 20 44,837 57,201 Trade and other receivables 21 748,907 763,125 Other receivables 19 24,489 32,608 Short term deposits 22 78,735 1,423 Amounts due to related parties 23(a) - 10,560 Cash and bank balances 22 106,190 33,303 1,003,158 898,220 TOTAL ASSETS 6,208,344 6,157,549 CAPITAL FUND AND LIABILITIES Capital and reserves Capital investment fund 24 148,732 148,732 Revaluation reserve 25 2,847,376 2,882,786 Designated funds 26(a) 105,763 105,762 Accumulated surplus 307,429 544,755 3,409,300 3,682,035 Non-current liabilities Endowment funds 27 96,660 98,711 Designated funds 26(b) 120,841 81,923 Deferred income-Capital grants 8 282,140 283,642 Long term loans 28 707,069 790,620 1,206,710 1,254,896 Current liabilities Trade and other payables 29 1,331,284 951,366 Contribution to SERT – contract liabilities 23(b) 89,856 122,036 Amounts due to related parties 23(a) 11,771 - Short term borrowings 28 159,423 147,216 1,592,334 1,220,618 TOTAL EQUITY AND LIABILITIES 6,208,344 6,157,549

The financial statements on pages 120 to 162 were approved by the University Council on 15 May 2019 and signed on its behalf by:-

Mrs. Bernadette Musundi Mr. David Owino Chairperson Council Member

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 119 Strathmore University Financial Statements For the year ended 31 December 2018

Statement of changes in fund balances Capital investment Accumulated Revaluation Designated Total fund surplus surplus Funds equity Notes Shs ‘000 Shs ‘000 Shs ‘000 Shs ‘000 Shs ‘000

Year ended 31 December 2017 As start of the year 148,732 577,530 2,918,196 105,763 3,750,221

Surplus for the year - (308) - (308) - Excess depreciation on revaluation 25 - 35,410 (35,410) - -

Total comprehensive income for the year 148,732 612,632 2,882,786 105,763 3,749,913

Contributions to trustees declared - (67,877) - (67,877)

At end of year 148,732 544,755 2,882,786 105,763 3,682,036

Year ended 31 December 2017 At 1 January 2018- As previously reported 148,732 544,755 2,882,786 105,763 3,682,036 IFRS 9 Day 1 transition adjustment 21 - (256,816) - - (256,816)

Adjusted balance at beginning of period 148,732 287,939 2,882,786 105,763 3,425,220

Surplus for the year - 12,880 - - 12,880 - Excess depreciation on revaluation 25 - 35,410 (35,410) - -

Total comprehensive income for the year 148,732 336,229 2,847,376 105,763 3,438,100

Contributions to trustees declared 23(b) - (28,800) - - (28,800)

At end of year 148,732 307,429 2,847,376 105,763 3,409,300

The notes on pages 122 to 160 are an integral part of these financial statements.

120 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

Statement of cash flows

Cash flows from operating activities Notes 2018 2017 Shs ‘000 Shs ‘000

Cash receipts from customers 3,346,854 2,776,427 Cash paid to suppliers (1,036,789) (859,152) Cash paid to employees 10(a) (1,787,190) (1,551,263) Cash paid for other operating expenses (130,440) (108,102) Interest paid 12 (64,308) (75,633)

Net cash from operating activities 328,127 182,277

Cash flows from investing activities Interest received 12 4,317 - Purchase of Property and equipment 13 (76,472) (101,334) Additions to prepaid operating leases 15 (2,600) (709) Purchase of intangible assets 16 (400) (10,684) Proceeds on disposal of equipment 1,820 1,965

Net cash used in investing activities (73,335) (110,762)

Cash flows from financing activities Capital grants received 8 6,892 1,303 Loan received 28 127,023 49,593 Loans repaid 28 (177,528) (167,167) Contribution to trustees 23(b) (60,980) (21,291)

Net cash from financing activities (104,593) (137,562)

Net increase in cash and cash equivalents 150,199 (66,047)

Cash and cash equivalents at start of 34,726 100,773 the year

Cash and cash equivalents at the end of the year 22 184,925 34,726

The notes on pages 122 to 160 are an integral part of these financial statements

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 121 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES

1 General information Strathmore University (the “University”) was awarded a charter under the University Act (Cap 210B) on 23 April 2008. It is sponsored by Strathmore Educational Registered Trust (SERT), a charitable non-profit making Trust incorporated in Kenya for the advancement of education, religion, social welfare and relief from poverty and distress. The address of its registered office and principal place of business is:

Strathmore University

Ole Sangale Road, Madaraka

P.O. Box 59857 – 00200

NAIROBI

2 Accounting policies The principal accounting policies applied in the preparation of the University’s financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Statement of compliance The University financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS). The measurement basis applied is the historical cost basis, except where otherwise stated in the accounting policies below. The University financial statements are presented in Kenya Shillings (Shs), rounded to the nearest thousand.

The preparation of the University financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires the University Council to exercise judgement in the process of applying the University’s accounting policies. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the University financial statements, are disclosed in Note 3.

(b) Application of new and revised IFRSs

(i) New and amended IFRS Standards that are effective for the current year ended 31 December 2018

Impact of initial application of IFRS 9 Financial Instruments In the current year, the University has applied IFRS 9 Financial Instruments (as revised in July 2014) and the related consequential amendments to other IFRS Standards that are effective for an annual period that begins on or after 1 January 2018. The transition provisions of IFRS 9 allow an entity not to restate comparatives. The University has elected not to restate comparatives in respect of the classification and measurement of financial instruments.

Additionally, the University adopted consequential amendments to IFRS 7 Financial Instruments: Disclosures that were applied to the disclosures for 2018 only and not to the comparative period.

122 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(b) Application of new and revised IFRSs (continued)

(i) New and amended IFRS Standards that are effective for the current year ended 31 December 2018

Impact of initial application of IFRS 9 Financial Instruments (continued) The standard amends the classification and measurement models for financial assets. See below.

1) Classification and measurement of financial assets The University has applied the requirements of IFRS 9 to instruments that continue to be recognised as at 1 January 2018 and has not applied the requirements to instruments that have already been derecognised as at 1 January 2018. Comparative amounts in relation to instruments that continue to be recognised as at 1 January 2018 have not been restated where appropriate in accordance with the transition provisions of the standard.

The University’s statement of financial position only contains the following financial assets:

1. Trade and other receivables

2. Due from related parties

3. Bank deposits, and cash & bank balances

4. Financial assets held at amortised cost

There has been no change in the measurement criteria for any of the University’s financial assets on adoption of IFRS 9 after the consideration of the business model and cash flow characteristics. Specifically, the trade receivables typically held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, are measured subsequently at amortised cost and are subject to impairment. See (2) below.

2) Impairment of financial assets In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model as opposed to an incurred credit loss model under IAS 39. Specifically, IFRS 9 requires the University to recognise a loss allowance for expected credit losses on its financial assets as listed in (1) above. The University measured the loss allowance for trade receivables at an amount equal to lifetime expected credit loss (ECL).

The ECL on trade receivables is estimated using a provision matrix by taking into account past default experience and an analysis of the debtors’ current financial position and adjusted for any factors that are specific to debtors’ general economic conditions. There has been no material adjustments to existing provisions.

See (5) below for further financial details of the adjustments.

See note 21 & 22 for details on movement in provisions for the year.

The adoption of the standard has not resulted in any adjustments to the comparatives as allowed by the provisions of the standard.

3) Classification and measurement of financial liabilities The application of IFRS 9 has not affected the University’s accounting for its liabilities. The payables continue to be recognised initially at fair value and subsequently measured at amortised cost.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 123 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(b) Application of new and revised IFRSs (continued)

(i) New and amended IFRS Standards that are effective for the current year ended 31 December 2018

Impact of initial application of IFRS 9 Financial Instruments (continued)

4) Disclosures in relation to the initial application of IFRS 9 There were no financial assets or financial liabilities which the University had previously designated as at FVTPL under IAS 39 that were subject to reclassification or which the University has elected to reclassify upon the application of IFRS 9.

5) Impact of initial application of IFRS 9 on financial performance The adoption and application of IFRS 9 in the current year has resulted in the following impairment:

2018 Shs’000

Trade receivables (Note 21) 479,154 - Financial assets held to at amortised cost

479,154

The increase in provisions in the current year through the statement of profit or loss was Shs 114,767,000 See note 21 for details.

6) Day one adjustment The University’s financial instruments as carried at fair value or amortised cost are all short term. The financial instruments as at 31 December 2018 include significant long outstanding from the 2017 financial year. Accordingly, the application of IFRS 9 resulted in an adjustment to the opening balance and a day one adjustment to retained earnings of Kshs 257 million has been made.

The application of IFRS 9 has had no impact on the cash flows of the University.

Impact of application of IFRS 15 Revenue from Contracts with Customers

IFRS 15 uses the terms ‘contract asset’ and ‘contract liability’ to describe what might more commonly be known as ‘accrued revenue’ and ‘deferred revenue’; however, the Standard does not prohibit an entity from using alternative descriptions in the statement of financial position. The University has adopted the terminology used in IFRS 15 to describe such balances. The term deferred income is used in respect to student fees revenue balances not armotized during the year Kshs 446,834,000 (2017: Kshs 319,158,000). ( Note 28)

In the current year, the University has applied IFRS 15 Revenue from Contracts with Customers (as amended in April 2016) which is effective for an annual period that begins on or after 1 January 2018. IFRS 15 introduced a 5‑step approach to revenue recognition.

Revenue is recognised at an amount that reflects the consideration to which the entity expects to be entitled in exchange for goods and services and at a point when the performance obligations associated with these goods and services has been satisfied.

The University has applied IFRS 15 in accordance with the fully retrospective transitional approach without using the practical expedients for completed contracts in IFRS 15:C5(a), and (b), or for modified contracts in IFRS 15:C5(c) but using the expedient in IFRS 15:C5(d) allowing both non-disclosure of the amount of the transaction price allocated to the remaining performance obligations, and an explanation of when it expects to recognise that amount as revenue for all reporting periods presented before the date of initial application, i.e. 1 January 2018.

124 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(b) Application of new and revised IFRSs (continued)

(i) New and amended IFRS Standards that are effective for the current year ended 31 December 2018

Impact of application of IFRS 15 Revenue from Contracts with Customers (continued) The application of IFRS 15 has not had a significant impact on the University’s accounting policies as the nature of the University’s revenue is that revenue is recognised at a point in time. See the ‘Basis of preparation’ section for the University’s accounting policies for its revenue streams. IFRS 15 has not had a significant impact on the financial position and/or financial performance of the University. Accordingly, there has been no adjustment for any of the financial statement line items as a result of the application of IFRS 15.

The following new and revised IFRSs were effective in the current year and had no material impact on the amounts reported in the University financial statements.

Amendments to IFRS 2 Classification and Measurement of Share‑based Payment Transactions The amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions clarify the following aspects:

• In estimating the fair value of a cash‑settled share‑based payment, the accounting for the effects of vesting and non‑vesting conditions should follow the same approach as for equity‑settled share‑based payments.

• Where tax law or regulation requires an entity to withhold a specified number of equity instruments equal to the monetary value of the employee’s tax obligation to meet the employee’s tax liability which is then remitted to the tax authority (typically in cash), i.e. the share‑based payment arrangement has a ‘net settlement feature’, such an arrangement should be classified as equity‑settled in its entirety, provided that the share‑based payment would have been classified as equity‑settled had it not included the net settlement feature.

• A modification of a share‑based payment that changes the transaction from cash‑settled to equity‑settled should be accounted for as follows:

i) the original liability is derecognised; iI) the equity‑settled share‑based payment is recognised at the modification date fair value of the equity instrument granted to the extent that services have been rendered up to the modification date; and iii) any difference between the carrying amount of the liability at the modification date and the amount recognised in equity should be recognised in profit or loss immediately.

The amendments to the standard has had no impact on the University’s financial statements.

Amendments to IAS 40 Transfers of Investment Property The amendments to IAS 40 Transfers of Investments Property clarify the following aspects:

• Transfer to, or from, investment property necessitates an assessment of whether a property meets, or has ceased to meet, the definition of investment property, supported by observable evidence that a change in use has occurred.

The amendments to IAS 40 Transfers of Investments Property clarify the following aspects:

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 125 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(b) Application of new and revised IFRSs (continued)

(i) New and amended IFRS Standards that are effective for the current year ended 31 December 2018

Amendments to IAS 40 Transfers of Investment Property (continued) • An entity assesses a deferred tax asset in combination with other deferred tax assets. Where tax law restricts the utilisation of tax losses, an entity would assess a deferred tax asset in combination with other deferred tax assets of the same type.

The amendments to the standard have had no impact on the University’s financial statements.

Annual Improvements to IFRS Standards 2014-2016 Cycle The annual improvements to IFRSs 2014-2016 cycle include a number of amendments to various IFRSs, which are summarised below:

The amendments to IAS 28 Investments in Associates and Joint Ventures clarify that the the option for a venture capital organisation and other similar entities to measure investments in associates and joint ventures at FVTPL is available separately for each associate or joint venture, and that election should be made at initial recognition.

In respect of the option for an entity that is not an investment entity (IE) to retain the fair value measurement applied by its associates and joint ventures that are IEs when applying the equity method, the amendments make a similar clarification that this choice is available for each IE associate or IE joint venture.

The amendments to the standard have had no impact on the University’s financial statements.

IFRIC 22 Foreign Currency Transactions and Advance Consideration IFRIC 22 addresses how to determine the ‘date of transaction’ for the purpose of determining the exchange rate to use on initial recognition of an asset, expense or income, when consideration for that item has been paid or received in advance in a foreign currency which resulted in the recognition of a non‑monetary asset or non‑monetary liability (for example, a non‑refundable deposit or deferred revenue).

The Interpretation specifies that the date of transaction is the date on which the entity initially recognises the non‑monetary asset or non‑monetary liability arising from the payment or receipt of advance consideration. If there are multiple payments or receipts in advance, the Interpretation requires an entity to determine the date of transaction for each payment or receipt of advance consideration.

The application of this interpretation has had no effect on the University’s financial statements. i) Relevant new and amended standards and interpretations in issue but not yet effective in the year ended 31 December 2018 Effective for annual periods beginning Amended to standards on or after 1 January 2019, with earlier application IFRS 16-Leases permitted Amendments to IAS 28 Long‑term Interests in Associates and 1 January 2019, with earlier application Joint Ventures permitted Annual Improvements to IFRS Standards 2015–2017 Cycle- Amendments to IFRS 3 Business Combinations, IFRS 11 Joint 1 January 2019, with earlier application Arrangements IAS 12 Income Taxes and IAS 23 Borrowing Costs permitted

Amendments to IAS 19 Employee Benefits Plan Amendment, 1 January 2019, with earlier application Curtailment or Settlement permitted IFRS 10 Consolidated Financial Statements and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or 1 January 2019, with earlier application Joint permitted Effective for annual periods beginning IFRIC 23 Uncertainty over Income Tax Treatments on or after 1 January 2019

126 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(b) Application of new and revised IFRSs (continued)

(ii) New and revised IFRS Standards in issue but not yet effective At the date of authorisation of these financial statements, the University has not applied the following new and revised IFRS Standards that have been issued but are not yet effective

New and Amendments to standards Effective for annual periods beginning on or after

IFRS 16 Leases 1 January 2019, with earlier application permitted

IFRS 17 Insurance Contracts 1 January 2022, with earlier application permitted

Amendments to IFRS 9: Prepayment Features with 1 January 2019, with earlier application permitted Negative Compensation

Amendments to IAS 28 Long‑term Interests in 1 January 2019, with earlier application permitted Associates and Joint Ventures

Annual Improvements to IFRS Standards 2015–2017 1 January 2019, with earlier application permitted

Amendments to IAS 19 Employee Benefits 1 January 2019, with earlier application permitted

IFRS 10 Consolidated Financial Statements and IAS Effective for annual periods beginning on or after 28 (amendments) a date to be determined

The University Council do not expect that the adoption of the Standards listed above will have a material impact on the financial statements of the University in future periods, except as noted below:

1) IFRS 16 Leases IFRS 16 introduces a comprehensive model for the identification of lease arrangements and accounting treatments for both lessors and lessees. IFRS 16 will supersede the current lease guidance including IAS 17 Leases and the related interpretations when it becomes effective. IFRS 16 will be adopted by the University from 1 January 2019. The new standard eliminates the classification of leases as either operating leases or finance leases and instead introduces a single lease accounting model.

The right-of-use asset is initially measured at cost and subsequently measured at cost (subject to certain exceptions) less accumulated depreciation and impairment losses, adjusted for any measurement of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at that date. Subsequently, the lease liability is adjusted for interest and lease payments, as well as the impact of lease modifications, amongst others.

The University Council of the University is still in the process of assessing the full impact of the application of IFRS 16 on the University’s financial statements and it is not practicable to provide a reasonable financial estimate of the effect until the University Council complete the detailed review. The University Council do not intend to early apply the standard.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 127 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(b) Application of new and revised IFRSs (continued)

(ii) New and revised IFRS Standards in issue but not yet effective

2) Amendments to IFRS 9 Prepayment Features with Negative Compensation The amendments to IFRS 9 clarify that for the purpose of assessing whether a prepayment feature meets the SPPI condition, the party exercising the option may pay or receive reasonable compensation for the prepayment irrespective of the reason for prepayment. In other words, prepayment features with negative compensation do not automatically fail SPPI.

The amendment applies to annual periods beginning on or after 1 January 2019, with earlier application permitted. There are specific transition provisions depending on when the amendments are first applied, relative to the initial application of IFRS 9.

The University Council of the University does not anticipate that the application of the amendments in the future will have an impact on the University financial statements.

3) Amendments to IAS 28 Long‑term Interests in Associates and Joint Ventures The amendment clarifies that IFRS 9, including its impairment requirements, applies to long‑term interests. Furthermore, in applying IFRS 9 to long‑term interests, an entity does not take into account adjustments to their carrying amount required by IAS 28 (i.e., adjustments to the carrying amount of long‑term interests arising from the allocation of losses of the investee or assessment of impairment in accordance with IAS 28).

The amendments apply retrospectively to annual reporting periods beginning on or after 1 January 2019.

Earlier application is permitted. Specific transition provisions apply depending on whether the first‑time application of the amendments coincides with that of IFRS 9.

The University Council of the University does not anticipate that the application of the amendments in the future will have an impact on the University financial statements.

4) Annual improvements to IFRS Standards 2015 – 2017 Cycle The Annual Improvements to IFRS Standards 2015-2018 cycle makes amendments to the following standards:

• IAS 12 Income Taxes - The amendments clarify that an entity should recognise the income tax consequences of dividends in profit or loss, and other comprehensive income or equity according to where the entity originally recognised the transactions that generated the distributable profits. This is the case irrespective of whether different tax rates apply to distributed and undistributed profits.

• IAS 23 Borrowing Costs - The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings.

• IFRS 11 Joint Arrangements - The amendments to IFRS 11 clarify that when a party that participates in, but does not have joint control of, a joint operation that is a business obtains joint control of such a joint operation, the entity does not remeasure its PHI in the joint operation. All the amendments are effective for annual periods beginning on or after 1 January 2019 and generally require prospective application. Earlier application is permitted.

128 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(b) Application of new and revised IFRSs (continued)

(ii) New and revised IFRS Standards in issue but not yet effective

4) Annual improvements to IFRS Standards 2015 – 2017 Cycle (continued) All the amendments are effective for annual periods beginning on or after 1 January 2019 and generally require prospective application. Earlier application is permitted.

The Council of the University do not anticipate that the application of the amendments in the future will have an impact on the University financial statements.

5) Amendments to IAS 19 Employee Benefits Plan Amendment, Curtailment or Settlement The amendments clarify that the past service cost (or of the gain or loss on settlement) is calculated by measuring the defined benefit liability (asset) using updated assumptions and comparing benefits offered and plan assets before and after the plan amendment (or curtailment or settlement) but ignoring the effect of the asset ceiling (that may arise when the defined benefit plan is in a surplus position). IAS 19 is now clear that the change in the effect of the asset ceiling that may result from the plan amendment (or curtailment or settlement) is determined in a second step and is recognised in the normal manner in other comprehensive income.

The paragraphs that relate to measuring the current service cost and the net interest on the net defined benefit liability (asset) have also been amended. An entity will now be required to use the updated assumptions from this remeasurement to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. In the case of the net interest, the amendments make it clear that for the period post plan amendment, the net interest is calculated by multiplying the net defined benefit liability (asset) as remeasured under IAS 19.99 with the discount rate used in the remeasurement (also taking into account the effect of contributions and benefit payments on the net defined benefit liability (asset)).

The amendments are applied prospectively. They apply only to plan amendments, curtailments or settlements that occur on or after the beginning of the annual period in which the amendments to IAS 19 are first applied. The amendments to IAS 19 must be applied to annual periods beginning on or after 1 January 2019, but they can be applied earlier if an entity elects to do so.

The Council of the University do not anticipate that the application of the amendments in the future will have an impact on the University financial statements.

(iii) Early adoption of standards The University did not early-adopt any new or amended standards in 2018.

(c ) Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). The measurement basis applied is the historical cost basis, except where otherwise stated in the accounting policies below. The financial statements are presented in Kenya Shillings (Shs), rounded to the nearest thousand.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires the University Council to exercise its judgement in the process of applying the University’s accounting policies. The areas involving a higher degree of judgement or complexity, or where assumptions and estimates are significant to the financial statements, are disclosed in Note 3.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 129 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(d) Foreign currency translation (i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (‘the Functional Currency’). The financial statements are presented in Kenya Shillings in thousands (Shs) which is the University’s Functional Currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the Functional Currency using the exchange rates prevailing at the dates of the transactions or valuations where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in profit or loss within ‘finance income or cost’. All other foreign exchange gains and losses are presented in profit or loss within ‘other income or expenses’.

(e) Revenue recognition Revenue comprises the fair value of the consideration received or receivable for the sale of services in the ordinary course of the University’s activities. Revenue is shown net of rebates and discounts.

The University recognises revenue to depict the transfer of promised services to students in an amount that reflects the consideration to which the University expects to be entitled in exchange for those services. The University bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Revenue is recognised as follows:

(i) Revenue from tuition fees are accounted for over the period in which they relate. Fees paid in advance are carried forward under trade and other payables.

(ii) Interest income is recognised on a time proportion basis using the effective interest method.

(iii) Donations received are recognised as and when they are received and utilized. Unutilized donations are treated as a payable since they are tied to specific purpose. Revenue grants are recognised when received.

(iv) Capital donations are recognised over the useful life of the assets they relate to. The portion not due is accounted for under non-current liability.

(f) Property and equipment Property and equipment are initially reported at cost. Subsequently land and buildings are shown at fair value, based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings and amortisation of leasehold land. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the University and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

130 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(f) Property and equipment (continued) Increases in the carrying amount arising on revaluation of land and buildings are credited to other comprehensive income and shown as a revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against the revaluation reserve; all other decreases are charged to the income statement. Each year the difference between depreciation based on the revalued carrying amount of the asset (the depreciation charged to the income statement) and depreciation based on the asset’s original cost is transferred from the revaluation reserve to retained earnings.

Leasehold land is amortised over remaining lease period. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued amounts to their residual values over their estimated useful lives.

Annual depreciation and amortisation rates are as follows:

Lease hold land Remaining lease period Buildings 2% Motor vehicles • Buses 7% • Other motor vehicles 10% Library books • IT books 20% • Other books 14.3% Furniture, fittings and other equipment • Computers 33.3% • Computer accessories 20% • Kitchen equipment 15% • Telephone and shredders 10% • Graduation gowns 20% • Furniture, fittings and equipment 7%

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are included in the income statement. When revalued assets are sold, the amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.

(g) Leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 131 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(h) Intangible assets Costs associated with maintaining computer software programmes are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the University are recognised as intangible assets when the following criteria are met: (i) it is technically feasible to complete the software product so that it will be available for use; (ii) management intends to complete the software product and use or sell it; (iii) there is an ability to use or sell the software product; (iv) it can be demonstrated how the software product will generate probable future economic benefits; (v) adequate technical, financial and other resources to complete the development and to use or sell the software product are available; and (vi) the expenditure attributable to the software product during its development can be reliably measured.

Directly attributable costs that are capitalised as part of the software product include the software development employee costs and an appropriate portion of relevant overheads.

Other development expenditures that do not meet these criteria are recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

Computer software development costs recognised as assets are amortised over their estimated lifespan, which does not exceed five years.

Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortised on the basis of the expected useful lives. Software has a maximum expected useful lifespan of 5 years.

Software is amortised on a straight line basis over the expected/estimated useful life.

(i) Inventories Inventories are stated at the lower of cost and net realisable value. Costs are determined using the weighted average cost method. Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. Obsolete, slow moving and defective inventories are written off through profit or loss.

(j) Financial instruments (i) Definition of default (continued) Irrespective of the above analysis, the University considers that default has occurred when a financial asset is more than 90 days past due unless the University has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate.

The University write-offs debt only when there is objective evidence that the debt will not be recovered and after it has exhausted its collection avenues.

(ii) Measurement and recognition of expected credit losses The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data adjusted by forward‑looking information as described above.

As for the exposure at default, for financial assets, this is represented by the assets’ gross carrying amount at the reporting date.

132 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(j) Financial instruments (continued) (ii) Measurement and recognition of expected credit losses (continued)

For financial assets, the expected credit loss is estimated as the difference between all contractual cash flows that are due to the University in accordance with the contract and all the cash flows that the University expects to receive, discounted at the original effective interest rate.

The University recognises an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

Interest income is recognised on a time proportion basis using the effective interest method.

(iii) Dividends are recognised as income in the period in which the right to receive payment is established.

Derecognition of financial assets The University derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the University neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the University recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the University retains substantially all the risks and rewards of ownership of a transferred financial asset, the University continues to recognise the financial asset and recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. In addition, on derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. In contrast, on derecognition of an investment in equity instrument, which the University has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings.

Financial liabilities After initial recognition, the University measures all financial liabilities including at amortised cost. Liabilities held for trading (financial liabilities acquired principally for the purpose of generating a profit from short- term fluctuations in price or dealer’s margin) are subsequently measured at their fair values.

Derecognition of financial liabilities Financial liabilities are derecognised when and only when the University’s obligations are discharged, cancelled or expire. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

Borrowings Borrowings are recorded at the proceeds received. Finance charges, including premiums payable on settlement or redemption, are accounted for on the accruals basis and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which they arise.

(k) Trade receivables Trade receivables are amounts due from customers (mainly students) for services rendered and merchandise sold in the ordinary course of business, if collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are a classified as current assets. If not, they are presented as non-current assets.

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method less provision for impairment.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 133 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued)

(l) Cash and cash equivalents Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.

(m) Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

(n) Borrowings Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any differences between proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings, using the effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs.

To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are classified as current liabilities unless the University has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period.

(o) Provisions Provisions are recognised when: the University has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Restructuring provisions comprise lease termination penalties and employee termination payments. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

(p) Employee benefits (i) Retirement benefit obligations The University operates a defined contribution staff provident scheme. The University and all its employees also contribute to the appropriate National Social Security Fund, which is also a defined contribution scheme.

The University has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.The University’s contributions to the defined contribution schemes are recognized as an employee benefit expense in the year which it relates.

134 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

2 Accounting policies (continued) (p) Employee benefits (continued)

(ii) Other entitlements All employees are expected to take their annual leave as and when it matures during the year. The estimated monetary liability for employees’ accrued annual leave entitlement at the financial reporting date is recognized as an expense accrual.

Employee’s entitlements to gratuity are recognised when they accrue to contractual employees. A provision is made for the liability for such entitlements as a result of services rendered by employees up to the statement of financial position date. Such employees become entitled to the gratuity on completion of their contracts and the payments out of this are charged to the accrued gratuity account.

(iii) Termination benefits Termination benefits are payable when employment is terminated by the University before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The University recognises termination benefits at the earlier of the following dates: (a) when the University can no longer withdraw the offer of those benefits; and (b) when the University recognises costs for a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

(q) Capital grants

Capital grants specific to acquisition or construction of assets are recognised as a long term liability and recognised in the income statement over the life of the related asset.

(r) Investment property

Property held for long-term rental yields that is not occupied by the University is classified as investment properties.

Investment property comprises of buildings. It is carried at fair value. Fair value is based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. These valuations are reviewed regularly by an independent valuation expert.

Changes in fair values are recorded in profit or loss.

Property located on land that is held under an operating lease is classified as investment property as long as it is held for long-term rental yields and is not occupied by the University. The initial cost of the property is the lower of the fair value of the property and the present value of the minimum lease payments. The property is carried at fair value after initial recognition.

If an investment property becomes owner-occupied, it is reclassified as property and equipment, and its fair value at the date of reclassification becomes its cost for subsequent accounting purposes.

If an item of property and equipment becomes an investment property because its use has changed, any difference arising between the carrying amount and the fair value of this item at the date of transfer is recognised in other comprehensive income as a revaluation of property and equipment. However, if a fair value gain reverses a previous impairment loss, the gain is recognised in the income statement. Upon the disposal of such investment property, any surplus previously recorded in equity is transferred to retained earnings; the transfer is not made through profit or loss.

(s) Comparatives

Where necessary, comparative numbers have been adjusted to conform to changes in presentation in the current year.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 135 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

3 Critical accounting estimates and judgements The University makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Equipment lifespan The University determines the estimated useful lifespan and related depreciation charges for its property, equipment and leasehold land. This estimate is based on projected asset lifespan for its assets. Management will increase the depreciation charge where useful lives are less than previously estimated lifespan, or it will write-off or write-down technically obsolete or non-strategic assets that have been abandoned or sold.

Were the actual useful lives of the equipment to differ by 5% from management’s estimates, the carrying amount of the equipment would be an estimated Shs 4,292,000 higher or Shs 4,744,000 lower.

4 Capital management Capital represent the non-current assets that were transferred from the trustees when the current campus was being set up. The University’s objectives when managing capital are to safeguard the University’s ability to continue as a going concern in order to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the University may sell assets to reduce debt

The University monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents.

Total capital is calculated as equity plus reserves, as shown in the statement of financial position, plus net debt. The University’s strategy was to maintain a gearing ratio between 0% and 50%.

The gearing ratios at 31 December 2018 and 2017 were as follows:

2018 2017 Shs’000 Shs’000

Total borrowings (Note 28) 866,492 937,836 Less: cash and cash equivalents (Note 22) (184,925) (34,726)

Net debt 681,567 903,110

Total equity 3,367,367 3,682,035

Total capital 4,144,074 4,585,145

Gearing ratio 17% 20%

5 Financial risk management objectives and policies The University’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. The University’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on its financial performance. The University does not hedge any of its risk exposures.

Financial risk management is carried out by the finance department under policies approved by the University Council.

Market risk (i) Foreign exchange risk Foreign exchange risk arises from recognized assets and liabilities. The University operates wholly within Kenya and its assets and liabilities are denominated in Kenya shillings. The University has limited transactions in foreign currency. The Council believes there is minimal risk of significant losses due to exchange rate fluctuations.

136 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

5 Financial risk management objectives and policies (continued)

Market risk (continued) The University has transactional currency exposures. Such exposure arises from foreign currency denominated borrowings and cash and bank balances.

In addition, the University raises some bills in foreign currency and receives the settlements in the same currency to avoid the effect of swinging currency exchange rates. The University also negotiates its purchases in Kenya shillings and settles the equivalent in foreign currency.

The University manages foreign exchange risk by converting its foreign currency collections into local currency on an ongoing basis to cater for its operational requirements. 5 percent is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonable possible change in foreign exchange rates

At 31 December 2018, if the Shilling had weakened/(strengthened) by 5% (2017: 5%) against the US dollar with all other variables held constant, surplus for the year would have been Shs 2,314,000 (2017: Shs 4,426,430) higher/(lower), mainly as a result of US dollar bank balances and loan.

At 31 December 2018, if the Shilling had weakened/(strengthened) by 5% (2017: 5%) against the Sterling pound with all other variables held constant, surplus for the year would have been Shs (1,079,759) (2017: Shs (15,505)) higher, mainly as a result of Sterling pounds bank balance

At 31 December 2018, if the Shilling had weakened/(strengthened) by 5% (2017: 5%) against the Euro with all other variables held constant, surplus for the year would have been Shs 17,377,623 (2017: Shs 20,416,755) higher, mainly as a result of Euro bank and loan balances.

At 31 December 2018, if the Shilling had weakened/(strengthened) by 5% (2017: 5%) against the Ugandan shilling with all other variables held constant, surplus for the year would have been Shs (34,997) (2017: 20,036) higher, mainly as a result of bank balances.

At 31 December 2018, if the Shilling had weakened/(strengthened) by 5% (2017: 5%) against the Rwanda shilling with all other variables held constant, surplus for the year would have been Shs (216,775) (2017:Shs 2,529) higher, mainly as a result of bank balances.

At 31 December 2018, if the Shilling had weakened/(strengthened) by 5% (2017: 5%) against the Rwanda shilling with all other variables held constant, surplus for the year would have been Shs (11,387) higher, mainly as a result of bank balances.

The following table sets out the carrying amount of the University’s financial instruments that are exposed to foreign currency exchange risk:

CURRENCY RISK 2018 2017 Shs ‘000 Shs ‘000

Assets in foreign currency 30,662 (8,173) Liabilities in foreign currency (431,806) (504,893) Net foreign currency exposure as at 31 December (401,144) (513,066)

(ii) Price risk The University does not hold any financial instruments subject to price risk.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 137 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued) 5 Financial risk management objectives and policies (continued)

Market risk (continued)

(iii) Cash flow and fair value interest rate risk

The University’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the University to cash flow interest rate risk which is partially offset by cash held at variable rates. The University regularly monitors financing options available to ensure optimum interest rates are obtained.

As at 31 December 2018, an increase/decrease of 15 basis points (2017: 15 basis points) would have resulted in a decrease/increase in surplus of Shs 5,548,463 (2017: Shs 6,010,245).

The table sets out the carrying amount of the University’s financial instruments with predetermined terms and are thus not exposed to interest rate risks.

Effective interest rate 2018 2017 % Shs’000 Shs’000 Cooperative Bank of Kenya Limited loan: Non-current portion 14.25% - - Current portion 14.25% - 4,972 Cooperative Bank of Kenya Limited loan: - Solar project Non-current portion 5.80% 66,193 80,514 Current portion 5.80% 13,240 13,240 EADB Bank Non-current portion 13.50% 279,412 317,460 Current portion 13.50% 38,102 38,095 EADB Bank 2nd Loan Non-current portion 13.50% 17,145 13,284 Current portion 13.50% 2,338 1,002 Cooperative Bank of Kenya Limited loan: -laptop loan Non-current portion 14.50% - - Current portion 14.50% - 34,035 Cooperative Bank of Kenya Limited loan: -laptop loan 2nd Loan Non-current portion 14.50% 2,451 - Current portion 14.50% 14,704 - Avenue Laptops Lease Non-current portion 14.50% - 10,236 Current portion 14.50% 10,236 17,783 Avenue Laptops Lease1 Non-current portion 14.50% 730 - Current portion 14.50% 2,386 -

Avenue Laptops Lease2 Non-current portion 13.50% 13,082 - Current portion 13.50% 26,607 - Avenue Laptops Lease3 - Non-current portion 13.50% 3,876 - Current portion 13.50% 6,120 - Avenue Laptops Lease4 - Non-current portion 13.00% 7,615 - Current portion 13.00% 9,880 -

138 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

5 Financial risk management objectives and policies (continued)

Credit risk Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions as well as credit exposures to students, including outstanding receivables and committed transactions. Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the University.

Credit risk is managed by the finance director, except for credit risk relating to accounts receivable balances which is managed by the credit controller. The credit controller is further responsible for managing and analysing credit risk for each new client before standard payment and delivery terms are offered. The University does not have any significant concentrations of credit risk.

For banks and financial institutions, only reputable well established financial institutions are accepted. For trade receivables, the credit controller assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. The University does not grade the credit quality of receivables. The utilisation of credit limits is regularly monitored. The University has negotiated and guaranteed a student loan scheme with Chase Bank on behalf of the students of Shs 15 million. The students are thus able to procure student loans from the Bank at competitive rates thus ensuring reduced default risk on their fees balances. However, Chase Bank (K) Limited was placed under receivership and the facility cannot be utilised for new student loans.

The amount that best represents the University’s maximum exposure to credit risk at 31 December is made up as follows:

Fully Past At 31 December 2018 preforming due Impaired Total Shs’000 Shs’000 Shs’000 Shs’000

Cash equivalents 184,925 - - 184,925 Trade receivables 466,024 - 479,154 945,178 Other receivables 307,371 - - 307,371 Endowment fund 27,633 - - 27,633 Designated fund 32,925 - - 32,925 1,018,878 - 479,154 1,498,032

Fully At 31 December 2017 performing Past due Impaired Total Shs’000 Shs’000 Shs’000 Shs’000 Cash and cash equivalents 34,726 - - 34,726 Trade receivables 610,053 - 409,889 1,019,942 Receivables from related parties 10,560 - - 10,560 Other receivables 261,468 - - 261,468 Endowment fund deposits 6,205 - - 6,205 Designated fund deposits 17,264 - - 17,264 827,033 - 409,889 1,350,165

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 139 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

5 Financial risk management objectives and policies (continued) Credit risk (continued) Cash and bank balances, endowment fund deposits and designated fund deposits are fully performing.

The student debtors and customers under the fully performing category are paying their debts as the students are currently enrolled for University courses and other customers continue trading. The default rate is low. Past due amounts are those beyond the maximum established credit period, and represent low but paying customers. These receivables continue to be serviced even though this is not done on the contractual dates. Impaired debt is fully provided for.

Bank balances held by receiver represents amounts held with Chase Bank (K) Limited. The bank was placed under receivership in April 2016. The University will access these funds once the bank comes out of receivership.

Liquidity risk Liquidity risk is the risk that the University will not be able to meet its financial obligations as they fall due. Prudent liquidity risk management includes maintaining sufficient cash balances, and the availability of funding from an adequate amount of committed credit facilities. Due to the dynamic nature of the underlying businesses, the finance department maintains flexibility in funding by maintaining availability under committed credit lines.

Management perform cash flow forecasting and monitor rolling forecasts of the University’s liquidity requirements to ensure it has sufficient cash to meet its operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the University does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. The University’s approach when managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, without incurring unacceptable losses or risking damage to the University’s reputation.

The maturity period for the University’s financial obligations as at the reporting date is as disclosed below in Shs ‘000.

At 31 December 2018 Borrowings Trade and other Contribution to Total payables SERT

Less than three months; 41,763 912,857 - 954,620 3 months - one year; 117,660 66,165 89,856 273,681 one year - five years; and 385,700 352,262 - 737,962 Over five years 321,369 - - 321,369 Total 866,492 1,331,284 89,856 2,287,632

Trade and other Contribution to At 31 December 2017 Borrowings payables SERT Total

Less than 3 months 40,533 557,419 - 597,952 3 months - one year 106,683 38,651 130,836 276,170 One year - five years 371,939 355,296 - 727,235 Over 5 years 418,681 - - 418,681

Total 937,836 951,366 130,836 2,020,038

The University’s current liabilities exceed the current assets by Shs 589,176,000 (2017: Shs 334,176,000). Trade and other payables above include contract liabilities totalling Shs 446,834,000 (2017: Shs 319,158,000) which, based on management’s experience, do not result in cash outflows as these are recognised in income statement after the fees are earned by the University. When excluded, the University is in a net current asset position.

The maturity analysis excluding deferred fees within the next year is as below:

140 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

5 Financial risk management objectives and policies (continued) Liquidity risk (Continued)

At 31 December 2018 0 – 3 months 3 – 12 months Total

Expected outflows from obligations (507,786) (117,660) (625,446) Expected inflows from: Cash and cash equivalents 111,199 - 111,199 Inventories 44,837 - 44,837 156,036 - 156,036

Net inflows (351,751) (117,660) (469,410)

At 31 December 2017 0 – 3 months 3 – 12 months Total

Expected outflows from obligations (292,238) (106,683) (398,921) Expected inflows from: Cash and cash equivalents 59,023 - 59,023 Inventories 1,886 - 1,886 Amounts from related parties - 10,560 10,560 60,909 10,560 71,496

Net inflows (221,329) (96,123) (327,452)

The maturity analysis excluding deferred fees within the next year is as below:

6 Tuition fees 2018 2017 Shs ‘000 Shs ‘000

Certificate course 53,894 26,054 Professional courses 104,702 89,995 Diploma programmes 114,325 68,820 Degree programmes 1,588,882 1,414,737 Executive programmes 415,855 347,939 Masters programmes 194,495 117,230 Masters programmes for executive 163,278 142,052 PHD programmes 32,574 21,850 2,668,005 2,228,677

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 141 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

7 Donations received 2018 2017 Shs ‘000 Shs ‘000

Mckinney Rodgers 1,707 2,761 I and M Bank Scholarship 142 4,295 Rattansi Education Trust 663 780 Guiness scholarship 5,185 8,116 Friends of Mcfie - 8 Community outreach donors & endowment 11,327 5,777 Advancement office Bursaries - 58 Macheo project 3,885 2,951 Rahimtula Trust Scholarships 41 215 CFC Stanbic Bank Scholarships 21 2,304 Dr. Margaret Ogola Scholarship Fund 1,240 1,464 Coulson Harney Scholarship Fund 3 574 Mira Beau Da Gama RoseTrust Fund 22 367 Staff Giving Fund 2,855 1,430 Elimisha Stratizen 211 37 Alumni Funds - 100 Kamaljeet Fund 179 298 Msgr Clemente Faccani Fund 456 - Limmat Training Fund 122 117 SIMS Alumni Endowment Fund 216 - FAO Donors 634 - COP Alumni Scholarship Fund 354 47 Strathmore University Endowment Fund 3,697 1,491 Kazuka Scholarship Fund 355 - Other scholarships and endowment interest - 3,414 Langalanga Scholarship Fund - 102 Dean Of Student Scholarship Fund - 88 Fundacion Privada Scholarship Fund 510 453 Bankinter Scholarship Fund 130 - LEAP Fellow Fund 3,751 - BBS Scholarship Kitty 60 - Luis Borallo Bursary 280 - Business incubation donors 10,621 - Clubs- Presidential Donation 640 - DAAD Scholarship Fund 4,604 - Dympna Fitzpatrick Scholarship Fund 343 - Frank Fitzpatrick Scholarship Fund 314 - George Mbugua Endowment Fund 54 - Community Outreach donors 71 - Sports office 805 - Chaplain 10 34 Financials Aid 570 28 Mc Fie Account 523 960 Lenovo - 1,037 NIC bank 2,824 4,000 SLS donors 540 94 59,965 43,400

142 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

8 CAPITAL GRANTS 2018 2017 Shs ‘000 Shs ‘000

At 1 January 283,642 290,518 Received during the year 6,892 1,303 Transferred to income statement (8,394) (8,179)

At 31 December 282,140 283,642

Capital grants are recognized at their fair value where there is a reasonable assurance that the grant will be received and the University will comply with all attached conditions.

(i) Revenue Grants Grants received to compensate expenses or for the purpose of giving immediate support to the University with no future related costs recognized in the statement of comprehensive income in the year of receipt.

(ii) Capital Grants Where a grant is related to an asset, the grant is presented in the statement of financial position as a long term liability and is credited in the statement of comprehensive income over the periods and in the proportions in which depreciation expense on those assets are used to finance is recognized.

9 Other operating income 2018 2017 Shs ‘000 Shs ‘000

Cafeteria income 55,802 44,817 Clinic income 23,233 15,974 Gain on disposal of equipment 1,122 1,621 Short courses and books sales 170,684 169,164 Corporate training 331,409 228,622 Rental income 34,802 15,440 Research income 181,568 169,409 Interviews 4,349 3,527 Conference Fees 9,835 7,641 Sundry income 22,675 21,678 835,479 677,893

Research income relate to donor funded research projects.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 143 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

10 Administrative expenses 2018 2017 Shs ‘000 Shs ‘000

Staff costs (Note 10(a)) 1,787,190 1,551,263 Other consultancies 253,528 56,740 Stationery and Supplies 200,693 127,248 Student scholarship 181,230 162,353 Food, cleaning and laundry services 148,169 118,856 Bad and doubtful debts expense (note 21) 114,767 51,468 Air tickets 105,587 63,098 Students accommodation 73,723 61,988 Telephone, Internet and Postage 45,577 43,784 Advertising expenses 40,879 41,033 Hire of facilities and equipment 37,865 11,779 Administration transport expenses 36,555 34,184 Other administrative expenses 26,183 36,894 Subscriptions And Gifts 25,459 16,565 Student Expenses 24,865 1,843 Rent Expenses 16,186 4,547 Photo. & Duplication-Outsourced 13,471 8,879 Software License And Support 11,102 13,916 Bank Charges Expenses 10,162 8,254 Conferences & seminar 9,310 3,973 Bus Expenses 8,509 5,078 Sports equipment and clubs 7,181 4,614 Separation Cost 5,023 1,315 Consumables 4,965 1,541 Sitting Allowance 4,530 3,761 Gas expenses 4,162 3,674 Graduation & Open Day 4,078 2,231 Research expenses 3,852 109,997 Auditors’ remuneration - External auditors 3,599 3,506 Entertainment 3,559 4,467 Legal fees 2,653 281 Accreditation 1,260 212 Contingency (Security drill expenses) 392 2,263

3,216,264 2,561,605

144 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

10 Administrative expenses (continued)

10(a) Staff cost 2018 2017 Shs ‘000 Shs ‘000

Salaries and wages academic staff 833,981 777,707 Salaries and wages administrative staff 310,428 238,150 Part time teaching 396,963 339,397 Gratuity 1,175 2,584 Provident fund contributions 52,733 50,389 NSSF contributions 3,832 2,353 Medical expenses 32,232 29,855 Staff scholarship 36,525 32,268 Bursaries and staff training 25,788 21,824 Staff welfare 93,533 56,736

1,787,190 1,551,263

The average number of employees during the period was 713 (2017 – 625). Staff gratuity is payable after successful completion of contract. It is computed as 10% of basic salary and accrued on a monthly basis. The payments are done through accrued expenses account.

Key management includes University Council Members (executive and non-executive) and members of senior management. The compensation paid or payable to key management for employee services is shown below:

2018 2017 Shs ‘000 Shs ‘000 Short-term employee benefits Salaries and other short-term employment benefits 88,697 81,645 Sitting allowance 4,079 3,551 Post-employment benefits Other long-term benefits - -

92,776 85,196

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 145 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

10 Administrative expenses (continued)

10(b) Other administrative expenses 2018 2017 Shs ‘000 Shs ‘000

Legal fees 2,653 281 Food, cleaning and laundry services 148,169 118,856 Student scholarship 181,230 162,353 Telephone, Internet and Postage 45,577 43,784 Stationery and Supplies 200,693 127,248 Bus Expenses 8,509 5,078 Bad and doubtful debts expense (note 21) 114,767 51,468 Auditors’ remuneration - External auditors 3,599 3,506 Advertising expenses 40,879 41,033 Administration transport expenses 36,555 34,184 Research expenses 3,852 109,997 Air tickets 105,587 63,098 Students accommodation 73,723 61,988 Conferences & seminar 9,310 3,973 Other consultancies 253,528 56,740 Subscriptions And Gifts 25,459 16,565 Photo. & Duplication-Outsourced 13,471 8,879 Software License And Support 11,102 13,916 Bank Charges Expenses 10,162 8,254 Sports equipment and clubs 7,181 4,614 Hire of facilities and equipment 37,865 11,779 Separation Cost 5,023 1,315 Entertainment 3,559 4,467 Graduation & Open Day 4,078 2,231 Student Expenses 24,865 1,843 Consumables 4,965 1,541 Gas expenses 4,162 3,674 Sitting Allowance 4,530 3,761 Accreditation 1,260 212 Rent Expenses 16,186 4,547 Contingency (Security drill expenses) 392 2,263 Other administrative expenses 26,183 36,894

1,429,074 1,010,342

146 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

11 Establishment expenses 2018 2017 Shs ‘000 Shs ‘000 Depreciation 128,341 122,558 Water and Electricity 32,865 28,316 Amortisation of operating lease prepayments 34,572 34,572 Amortisation of intangible assets 1,264 1,314 Repairs & Maintenance 43,659 31,841 Security expenses 24,450 22,983 Insurance expenses 17,421 15,632 Other establishment expenses 13,025 7,750

295,597 264,966

12(a) Finance costs 2018 2017 Shs ‘000 Shs ‘000 Finance costs: Interest on loan 64,308 69,301 Interest receivable - 771 64,308 70,072

12(b) Finance interest income Finance interest income Unrealised exchange gain– Euro & dollar loan (12,152) - Unrealised Exchange loss– Euro loan - 57,914 Interest receivable (4,317) Other bank exchange loss - 5,561

(16,469) 63,475

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 147 For theyear ended31December 2018 Financial Statements Strathmore University 148 NOTES (continued)

STRATHMORE UNIVERSITY | 13 Property, plant and equipment

As at 31 December 2018 Furniture, fittings & other Buildings Motor vehicles Library books equipment Total

Shs ‘000 Shs ‘000 Shs ‘000 Shs ‘000 Shs ‘000 At 1 January 2018

ANNUAL REPORT 2018 Cost 2,267,774 27,635 177,393 800,509 3,273,311 Accumulated depreciation (120,056) (20,198) (129,853) (419,812) (689,919)

Net book amount 2,147,718 7,437 47,540 380,697 2,583,392

Year ended 31 December 2018 Opening net book amount 2,147,718 7,437 47,540 380,697 2,583,392 Additions 18,402 2,480 7,409 48,181 76,472 Disposals - (698) (2,843) (3,541) Depreciation charge for the year (47,248) (2,078) (9,556) (75,204) (134,086) Depreciation eliminated on disposals 488 - 1,574 2,062

Closing net book amount 2,118,872 7,629 45,393 352,405 2,524,299 At 31 December 2018 Cost 2,286,176 29,417 184,802 845,847 3,346,242 Accumulated depreciation (167,304) (21,788) (139,409) (493,442) (821,943)

Net book amount 2,118,872 7,629 45,393 352,405 2,524,299

Buildings were revalued in December 2014 by Ryden International Limited. Furniture and equipment was revalued in 2008 by Safety Surveyors Limited. Valuations are made on the basis of the recent market transactions on arm’s length terms (i.e. open market value). The book values of the properties were adjusted to the revaluations and the resultant surplus was credited to other comprehensive income and is shown in the revaluation reserve in accumulated fund. If the cost model had been used to measure property, plant and equipment, the carrying amount would have been Shs 1,449,674,000.

Bank borrowings are secured on properties to the value of Shs 1,361,989,006 (2017: Shs 1,381,484,821) (Note 27). NOTES (continued) For theyear ended31December 2018 Financial Statements Strathmore University

13 Property, plant and equipment

As at 31 December 2017 Furniture, fittings & other Buildings Motor vehicles Library books equipment Total Shs ‘000 Shs ‘000 Shs ‘000 Shs ‘000 Shs ‘000

At 1 January 2017 Cost 2,238,046 27,635 172,374 733,997 3,172,052 Accumulated depreciation (74,071) (18,276) (121,197) (353,858) (567,402)

Net book amount 2,163,975 9,359 51,177 380,139 2,604,650

Year ended 31 December 2017 Opening net book amount 2,163,975 9,359 51,177 380,139 2,604,650 Additions 29,728 - 5,019 66,587 101,334 Disposals - (75) (75) Depreciation charge for the year (45,985) (1,922) (8,656) (65,989) (122,552) Depreciation eliminated on disposals - - 35 35

STRATHMORE UNIVERSITY | Closing net book amount 2,147,718 7,437 47,540 380,697 2,583,392 At 31 December 2017 Cost 2,267,774 27,635 177,393 800,509 3,273,311 Accumulated depreciation (120,056) (20,198) (129,853) (419,812) (689,919) Net book amount 2,147,718 7,437 47,540 380,697 2,583,392 ANNUAL REPORT 2018 149 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

14 Investment property 2018 2019 Shs ‘000 Shs ‘000

At 1 January 102,567 100,906 Fair value gains through profit or loss 737 1,661

At 31 December 103,304 102,567

The rental income earned by the University from its investment properties leased out under operating lease amounted to Shs 18,461,000 (2017 Shs 15,440,000).

The properties were valued by Ryden International Limited, professional independent valuers, in December 2017 on the basis of determining the open market value of the investment property. The open market value of all properties was determined using the cost approach based on the principle that the price that a buyer would pay for the property would not be more than the cost to purchase or construct an equivalent property.

15 Prepaid operating leases Shs ‘000 Year ended 31 December 2017 Cost- at 31 December 2017 2,585,115 Accumulated amortization at 31 December 2017 (103,693)

Net book amount at 31 December 2017 2,481,422

Year ended 31 December 2018 Opening net book amount 2,481,422 Additions 2,600 Amortization charge for the year (34,611)

Closing net book amount 2,449,411

At 31 December 2018 Cost 2,587,715

Accumulated amortization (138,303)

Net book amount at 31 December 2018 2,449,411

Prepaid operating leases relate to leasehold land owned by the University

150 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

16 Intangible assets Computer Computer Computer software software software work in progress Total 2018 2018 2018 Shs ‘000 Shs ‘000 Shs ‘000 At 1 January 2018 Cost 70,335 65,984 136,319 Accumulated depreciation (67,840) - (67,840)

Net book amount 2,495 65,984 68,479

Year ended 31 December 2018 Opening net book amount 2,495 65,984 68,479 Additions - 400 400 Charge for the year (1,265) - (1,265)

Closing net book amount 1,230 66,384 67,614

At 31 December 2018 Cost 70,335 66,384 136,719 Accumulated depreciation (69,105) - (69,105)

Net book amount 1,230 66,384 67,614

Academic Management System (AMS) software was initially valued at the cost incurred to develop the system. It was revalued in December 2010 by management. Revaluation surplus at the beginning and at the end of the period was Shs 11,950,715. This was credited to other comprehensive income and is shown in the revaluation reserve in accumulated fund. Due to lack of similar systems, the valuations were made by estimating the extended useful life that the software will have, the capacity to handle the University’s transactions and technological change. If the cost model had been used to measure the computer software, the carrying amount would have been nil (2017: nil).

17 Endowment fund deposits 2018 2017 Shs ‘000 Shs ‘000

Drakard fund 1,538 1,426 Kamaljeet fund 2,870 3,871 SRRCT-Clinic revolving fund. 13 13 Strathmore University Endowment fund 22,286 Luis Borallo bursary 926 895

Total Endowment fund investment 27,633 6,205

The endowment fund deposits represents grants received from various donors for the purpose of generating interest income for award of bursaries to financially needy students.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 151 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

18 Investment in designated fund 2018 2017 Shs ‘000 Shs ‘000

Staff development Fund 92 92 Staff medical fund 1 1 40 Anniv. E Fund 2,541 2,336 Land Development 17 17 Asset Replacement Fund 2 2 Capital Contribution Fund 22,250

Collateral For Student Loan Scheme 8,022 14,816

32,925 17,264 Total designated fund

These are funds held in current and fixed deposit accounts with various banks.

Maturity analysis of designated fund deposits 2018 2017 Shs ‘000 Shs ‘000 a) Within 30 days 2,649 2,448 b) Within 60 days - - c) Within 90 days - - d) After 90 days 30,276 14,816

32,925 617,264

19 Other receivables

2018 2017 Shs ‘000 Shs ‘000 As at January 32,608 43,478 Impairment - (10,869) Transfers to current and saving accounts (8,120) - 24,489 32,608 Held as follows: Bank and Cash Balances 19,446 20,711 Short term deposit 5,043 11,897

24,489 32,608

These are funds held in current and fixed deposit accounts with Chase Bank (K) Limited which was placed under receivership in April 2016. State Bank of Mauritius (SBM) took over 75% of Chase Bank through an offer made on 22nd December 2017 and accepted by Kenya Depositors Insurance Corporation (KDIC) on 4th January 2018. The remaining 25% has been impaired.

152 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

20 Inventories 2018 2017 Shs ‘000 Shs ‘000

Stationery stock 8,055 1,378 Food and beverage stock 2,618 1,886 Study materials 13,949 34,807 Medical Center Store 1,630 - Building, furniture & equipment materials 18,585 19,130

44,837 57,201

21 Trade and other receivables 2018 2017 Shs’000 Shs’000

Trade receivables 990,681 658,744 Loss allowance (479,154) (153,072)

Trade receivables - net 511,527 505,672 Other receivables and prepayments 282,883 266,335

794,410 772,007 Less Written off (45,502) (8,882)

Current receivables & prepayments 748,908 763,125

Written off 45,502 8,882

Movements on the provision for impairment of trade receivables are as follows:

2018 2017 Shs ‘000 Shs ‘000

At 1 January 153,072 110,486 Day 1 Adjustment 256,817 - Provision in the year (Note 10) 114,767 51,468 Receivables written off during the year as uncollectible (45,502) (8,882)

At 31st December 479,154 153,072

Non current receivables are due within five years from reporting date and are not secured and interest free. The total amounts were impaired Kshs 45,502,000 (2017: Kshs 8,882,000).

The carrying amounts of the current receivables approximate to their fair value.

Trade Receivables The Management estimate the loss allowance on trade receivables at the end of the reporting period at an amount equal to lifetime expected credit loss (ECL).

The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtors current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 153 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

21 Trade and other receivables (Continued) The following table details the risk profile of trade receivables based on the University’s provision matrix:

Students receivables – days past due Not past 31/12/2018 & 31/12/2017 31 - 60 61 - 90 91 - 120 121 - 360 > 361 Total due Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000

Expected credit loss rate 14% 17% 19% 23% 29% 100%

Estimated total gross 15,785 98,911 18,026 30,747 116,674 228,625 508,769 carrying amount at default

15,785 98,911 18,026 30,747 116,674 228,625 508,769 Lifetime ECL 2,210 16,815 3,425 7,072 33,836 185,858 249,215

Corporate receivables – days past due Not past 31/12/2018 & 31/12/2017 31 - 60 61 - 90 91 - 120 121 - 360 > 361 Total due Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000

Expected credit loss rate 19% 24% 27% 31% 34% 100%

Estimated total gross carrying amount at default 26,933 - 25,236 15,973 12,310 132,213 212,666

26,933 25,236 15,973 12,310 132,213 212,666

Lifetime ECL 5,084 6,928 4,985 4,146 100,436 121,579

Counties receivables – days past due 31/12/2018 & Not past 31 - 60 61 - 90 91 - 120 121 - 150 151 - 180 > 181 Total 31/12/2017 due Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000 Shs’000

Expected credit loss rate County 1 63% 63% 65% 67% 67% 67% 68% County 2 66% 66% 69% 69% 69% 69% 69% County 3 69% 69% 71% 71% 71% 71% 71% County 4 15% 15% 18% 18% 18% 18% 18%

Estimated total gross carrying amount at default

County 1 - - - - 18,782 85,408 6,178 110,368 County 2 - - - - - 14,409 - 14,409 County 3 - - - - 4,196 6,538 - 10,733 County 4 - - - - 4,440 4,456 15,135 24,031 County 5 64,203 64,203

64,203 - - - 27,418 110,810 21,313 223,743

Lifetime ECL - - - - 16,378 76,848 15,135 108,361

154 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

21 Trade and other receivables (Continued) The following table shows the movement in lifetime ECL that has been recognised for trade receivables in accordance with the simplified approach set out in IFRS 9.

Collectively Individually Total assessed assessed Balance at 1 January 2017 under IAS 39 and IFRS 9 153,072 - 153,072 Loss allowance charge for the year 174,934 81,883 256,817

Balance as at 31 December 2017 328,006 81,883 409,889

Loss allowance charge for the year 42,788 26,477 69,265

Balance as at 31 December 2018 370,793 108,361 479,154

22 Cash and cash equivalent For the purposes of the statement of cash flows, cash and cash equivalents comprise of the following amounts:-

2018 2017 Shs ‘000 Shs ‘000 Bank and Cash Balances 106,190 33,303 Short term deposit 78,735 1,423 184,925 34,726

23 Related parties transactions Strathmore Research & Consultancy Centre (SRCC) is an advisory centre of the University. The centre coordinates research and consultancy work of the University and ensures that clients receive high quality advice under generally accepted commercial arrangements. The mandate is to promote research and consulting activities within the University by leveraging faculty members. In addition, the centre is charged with the responsibility of commercializing University’s innovation and in so doing support entrepreneurship. The Research centre is limited by share capital and the University owns 100% of the share. The transactions below relate to expenses incurred by the University on behalf of SRCC and vice versa.

The University was established by Strathmore Education Trust. It is a charitable education trust and they are the trustees of the University.

No other commitment was due from SRCC.

23 Related parties transactions 2018 2017 Shs ‘000 Shs ‘000 (a) Balances due from/(to) related parties:

(i) Strathmore Research & Consultancy Center At 1 January 10,560 31,780

Net transaction during the year (22,331) (21,220) At 31 December (11,771) 10,560

In 2018, no provisions for doubtful debts were recognized. The amount of doubtful debt relating to the SRCC balance was Shs. 8,776,000 (2017: Shs 8,776,000). The balance is not secured and settlement is expected within the following financial year in cash. The opening balances for SRCC were incorporated in Strathmore University in 2016.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 155 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

23 Related parties transactions (continued) 2018 2017 (b) Due to SERT Shs ‘000 Shs ‘000 At 1 January 122,036 75,450 Contributions for the year 28,800 67,877 Paid during the year (60,980) (21,291)

At 31 December 89,856 122,036

24 Capital investment fund Capital investment fund represent the non-current assets that were transferred from SERT when Strathmore College moved from Lavington to Madaraka campus in 1993 separating Strathmore School and Strathmore College. These funds are used to champion the university’s mission of providing an all-rounded education to the student.

25 Revaluation reserve This arose from the revaluation of land, building, investment property and software.

2018 2017 Shs ‘000 Shs ‘000

At 1 January 2,882,786 2,918,196 Depreciation transfer - gross (35,410) (35,410)

At 31 December 2,847,376 2,882,786

26 (a) Designated funds (Capital and reserves) 2018 2017 Shs ‘000 Shs ‘000

Staff Development Fund 13,357 13,357 Staff Medical Fund 25,623 25,623 Research Fund 32,030 32,030 Capital Contribution Fund 34,753 34,753 105,763 105,763 Held as follows:- Invested in term deposit 93 93 Designated funds not invested 105,670 105,670

105,763 105,763

156 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

26(b) Designated funds 2018 2017 Shs ‘000 Shs ‘000 40 Anniv. E Fund 2,843 2,642 Land Development Reserve 4,078 4,078 Asset Replacement Fund 7,679 7,679 Medical Center fund 42,724 30,003 Creates 2,614 - H2020-TWIGA eHealth 3,145 - WAZI HUB Account 2,138 - MOTOROLA GRANT - IOT 950 - KNBS-SU-WB 13,181 - KENIA- MAZIWA PLUS 2,933 - CIPIT (Intellectual Property) 7,062 1,834 Integrity Fellowship - 3,707 SERC Projects 680 21,267 KENIA- NITRO 2,500 - Community outreach donations 1,963 3,110 KENET Travel Mini Grant 1,500 - Other funds 24,851 7,603 120,841 81,923

Held as follows:-

Invested in term deposit 10,581 21,743

Designated Funds not invested 110,260 60,180

Designated funds 120,841 81,923

26(b) Designated funds These are funds set aside as strategic reserve for future University projects such as capital projects, research, and collateral for student loans, staff development and welfare. These funds are held in various current and fixed deposit accounts in banks.

27 Endowment fund deposits 2018 2017 Shs ‘000 Shs ‘000

European Union 83,657 87,354 Drakard E Fund 1,071 959 Kamaljeet fund 3,067 3,082 Nyeri High Strath Alumni 680 639 Msgr Clemente Faccani 4,688 4,673 George Mbugua 816 660 SRRCT-Clinic Revolving Fund 2,681 1,344 96,660 98,711

The endowment funds represent grants received from the European Union, Drakard, Kamaljeet, Nyeri High School, Strathmore alumni, Msgr Clemente Faccani and SRRCT for the purpose of generating investment income for award of bursaries to financially needy students.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 157 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

28 Borrowings Borrowings 2018 2017 Shs ‘000 Shs ‘000 Non- Current Euro loan 316,566 369,125 EADB Loan 279,412 317,461 EADB 2nd Loan 17,145 13,284 Cooperative Bank laptop loan 2,451 - Avenue Laptops Lease - 10,236 Avenue Laptops Lease 1 730 - Avenue Laptops Lease 2 13,082 - Avenue Laptops Lease 3 3,876 - Avenue Laptops Lease 4 7,615 - Cooperative Bank solar project loan 66,192 80,514

707,069 790,620

Current Euro loan 35,807 37,909 Cooperative Bank loan - 4,972 EADB Loan 38,102 38,095 EADB 2nd Loan 2,338 1,002 Cooperative Bank laptop loan - 34,035 Cooperative Bank 2nd laptop loan 14,704 - Avenue Laptops Lease 10,236 17,783 Avenue Laptops Lease 1 2,389 - Avenue Laptops Lease 2 26,607 - Avenue Laptops Lease 3 6,120 - Avenue Laptops Lease 4 9,880 - Cooperative Bank solar project loan 13,240 13,420

159,423 147,216

866,492 937,836 Movement in loan At 1 January 937,836 997,496 Advanced in the year 127,023 49,593 Repayments (177,528) (167,167) Foreign exchange gain/loss (20,839) 57,914

At 31 December 866,492 937,836

158 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

28 Borrowings (Continued) The carrying amount of the borrowings approximate their fair value, as the impact of discounting is not material

The following loans amounting to Euro 3,333,552 (2017: Euro 3,641,052) from Fomento are repayable in quarterly instalments:-

Loan 2 Euro 737,310 over a period of 9 years

Loan 4 Euro 1,026,241 over a period of 9 years

Loan 5 Euro 1,262,500 over a period of 13 years

They are unsecured and non-interest bearing.

The loan amounting to Dollars 779,936 from Co-operative Bank of Kenya Ltd is repayable in monthly instalments over six years. It is secured by the University’s leasehold land LR. No. 209/10587 and LR. No. 209/11613; interest is payable at a rate of 5.8% per annum.

The loan amounting to KShs 336,996,177 from East African Development Bank Ltd is repayable in monthly instalments over ten years. It is secured by the University’s leasehold land LR. No. 209/10774 together with any buildings thereon; interest is payable at a rate of 13.50% per annum.

The loan amounting to KShs 17,154,667 from Co-operative Bank of Kenya Ltd is repayable in monthly instalments over two years. It is secured by the University’s leasehold land LR. No. 209/10587 and LR. No. 209/11613; interest is payable at a rate of 14.5% per annum.

The laptop leases amounting to KShs 80,534,575 from Avenue Lease & Rentals Ltd is repayable in monthly instalments over two years. It is unsecured but insured by lessor; interest is payable at a rate of 14% per annum.

The unpresented payments as at the statement of financial position date are reported as payables.

The carrying amount of the bank borrowings approximates to the fair value, as the impact of discounting is not significant.

29 Trade and other payables 2018 2017 Shs ‘000 Shs ‘000

Student payables 66,165 38,650 Deferred fees 446,834 319,158 Supplier payables 264,109 180,569 Accruals 145,852 34,487 Staff payables 56,062 36,785 Student Prepayments 276,910 239,642 Other payables 75,352 102,075

1,331,284 951,366

The carrying amounts of the above trade and other payables approximate their fair values.

STRATHMORE UNIVERSITY | ANNUAL REPORT 2018 159 Strathmore University Financial Statements For the year ended 31 December 2018

NOTES (continued)

30 Contingent liabilities 2018 2017 Shs ‘000 Shs ‘000 Litigation Matters 26,682 26,682

The University is exposed to various legal cases in the normal course of business. The University Council evaluates the status of these exposures regularly based on advice received from the University’s legal advisors to assess the probability of the University’s incurring related liabilities. Based on the information currently available and legal advice by the University’s legal advisors, the University Council believes that the ultimate resolution of the legal proceeding below would not have a material effect on the University’s financial statements.

Litigation relating to the security drill The plaintiff in this case has instituted suit against the University for injuries suffered during the security drill in the University on 30th November 2015. The amount of probable loss from the suit amounts to Ksh 26,682,721. This has been included in the litigation matters as contingent liability above.

31 Commitments Expenditure contracted for at the statement of financial position date but not recognised in the financial statements is as follows:

2018 2017 Shs ‘000 Shs ‘000

Property, plant and equipment and other expenses 178,160 50,768

160 STRATHMORE UNIVERSITY | ANNUAL REPORT 2018

Madaraka Estate, Ole Sangale Road PO Box 59857 - 00200 City Square - Nairobi, Kenya Tel: (+254) 703-034000 / (+254) 703-034200 / (+254) 703-034300 Email: [email protected] | Facebook: Strathmore | Twitter: @StrathU