IMPROVING HIGHER EDUCATION Public Disclosure Authorized PERFORMANCE IN KENYA: A POLICY REPORT Public Disclosure Authorized Public Disclosure Authorized August 21, 2019 Public Disclosure Authorized Report No: AUS0001105 . Kenya Kenya Higher Education Policy Note IMPROVING HIGHER EDUCATION PERFORMANCE IN KENYA: A POLICY REPORT . August 21, 2019 . EDU . © 2017 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Acknowledgements The report is prepared by a team led by Ruth Karimi Charo (Senior Education Specialist and Task Team Leader) and comprising a core team Roberta Malee Bassett ( Global Lead for Tertiary Education and Senior Education Specialist); Jason Allen Weaver (Senior Education Specialist); Paolo Belli (Program Leader); Jamil Salmi (Consultant, Tertiary Education); Joanna Bersin (Consultant, Education Technology ); Stephen Okiya (Consultant, Statistics); and Hafedh Zaafrane (Consultant, Tertiary Education). The core team acknowledges inputs provided by Bitange Ndemo; Fredrick Wamalwa; and Polycarp Otieno. The following Peer reviewers provided valuable comments: Marcelo Becerra (Lead Education Specialist); Nina Arnhold (Senior Education Specialist); Yoko Nagashima (Senior Education Specialist); Juan Cristobal Cobo Romani (Senior Education Specialist); Francisco Marmolejo (Lead Education Specialist); and Michael Trucano (Senior Education Specialist) The team is grateful for guidance provided by Safaa El Tayeb El-Kogali (Practice Manager) and Carlos Felipe Jaramillo (Country Director). Table of Contents Acronyms ......................................................................................................................................... i Executive Summary ....................................................................................................................... iv Chapter 1. Introduction ................................................................................................................... 1 1.1 Background ........................................................................................................................... 1 1.2 Purpose of the Policy Report ................................................................................................. 5 1.3 Methodology and Scope ........................................................................................................ 5 1.4 Organization of the Policy Report ......................................................................................... 6 Chapter 2. Designing and Implementing a Sustainable Financing Strategy ................................... 7 2.1 Expansion Scenarios for the Higher Education System ........................................................ 7 2.1.1 Present Situation ............................................................................................................. 7 2.1.2 Scenarios ......................................................................................................................... 8 2.2 Strategic Decisions Influencing Financing Needs .............................................................. 12 2.2.1. What Is at Stake ........................................................................................................... 12 2.2.2. Development of the Non-university Subsector ........................................................... 13 2.2.3. Expanding Cost-effective Distance Education Modes ................................................ 16 2.2.4. Development of the Private Sector .............................................................................. 18 2.2.5. Achieving Synergies and Complementarities.............................................................. 21 2.3 Resource Mobilization ........................................................................................................ 25 2.3.1 Scope for Additional Fiscal Resources ......................................................................... 25 2.3.2 Potential for Income Diversification ............................................................................ 28 2.3.3. Potential for Social Innovation .................................................................................... 37 2.4. Resource Allocation ........................................................................................................... 40 2.4.1. Present Funding System .............................................................................................. 40 2.4.2. Guiding Principles for a Sound Funding System ........................................................ 40 2.4.3. Options for Strengthening Kenya’s Funding Model ................................................... 42 2.4.4 Adopting a Three-pillar Funding Model ...................................................................... 46 2.4.5 Allocation of Research Funding ................................................................................... 46 Chapter 3. Improving Quality and Relevance in the Kenyan Higher Education System ............. 51 3.1 Diagnosis of the Present Situation ...................................................................................... 51 3.1.1 Proxy Measures of Quality and Relevance ................................................................... 51 3.1.2 Labor Market Results ................................................................................................... 54 3.1.3. Research and Technology Transfer Outputs ............................................................... 55 3.2 Improving Quality and Relevance at the Institutional Level .............................................. 58 3.2.1 Better Preparation of Incoming Students ...................................................................... 58 3.2.2. Enhanced Qualifications of Academics ....................................................................... 60 3.2.3. Curricular and Pedagogical Innovations ...................................................................... 61 3.2.4. Closer Links to Employers .......................................................................................... 65 3.2.5. Increased Internationalization ...................................................................................... 68 3.2.6. Strengthened Research Capacity ................................................................................. 69 3.3 Strengthening the National QA System .............................................................................. 73 3.3.1 Present QA System ....................................................................................................... 73 3.3.2 Guiding Principles for a Sound QA System ................................................................. 73 3.3.3 Options for Strengthening Kenya’s QA Model ............................................................ 74 3.4 Developing a Comprehensive Labor Market Information System ..................................... 77 3.4.1 International Examples ................................................................................................. 78 3.4.2. Lessons of Experience ................................................................................................. 82 3.4.3. Importance of Coordination ......................................................................................... 84 Chapter 4. Spotlight on the Potential Use of Technology in Kenyan Higher Education .............. 85 4.1 International Strategies, Models, and Experiences ............................................................. 85 4.1.1 Building Online Learning Programs: Outcomes and Best Practices Overview ........... 86 4.1.2 Providing Mentorship to Students in Online Programs ................................................ 97 4.1.3 Decreasing Course Material Costs with OER ............................................................ 102 4.1.4 Implementing Adaptive Active Learning to Improve Student Outcomes .................. 105 4.1.5 Integrating Coding Bootcamps into Higher Education Programs .............................. 110 4.1.6 Designing Innovative Programs: Leveraging Online Learning .................................. 112 4.2 Focus on Future-Ready Skills ..........................................................................................