Financing Sources, Institutional Governance and Performance of Technical and Vocational Education and Training (Tvet) Institutions in Kenya

Abstract

Performance of Technical and Vocational Education and Training (TVET) institutions in Kenya has remained a persistent concern, as many institutions continue to record low completion rates, inadequate training outcomes, and limited graduate employability. Technical and Vocational Education and Training is increasingly recognized as a critical sector for equipping the youth with the requisite skills for employment and economic development, both globally and within Kenya. Despite its strategic importance, the sector’s performance has been constrained by inadequate and inconsistent financing. The main objective of this study was to examine the influence of sources of financing, institutional governance and TVET institutions’ performance in Kenya. Specific objectives included: to establish the influence of government financing, influence of donor financing, influence of self-financing, and influence of public-private partnerships on performance of TVET institutions in Kenya. The study further analyzed the moderating effect of institutional governance on the relationship between financing sources and performance of TVET institutions. The study was anchored on Resource Dependence Theory, Human Capital Theory, Institutional Theory, and Stakeholder Theory. A descriptive research design was employed, utilizing a mixed-methods approach that incorporated both quantitative and qualitative data. The target population for the study comprised of 1464 key stakeholders in the TVET sector, including institutional administrators, teaching staff, and selected government officials from the Education Ministry department in charge of TVET management. Stratified random sampling was used to select a sample of 314 respondents from the target population and 297 valid responses were obtained. Data collection involved the use of structured questionnaires alongside a key informant interview guide. Quantitative data were processed and analyzed using SPSS (version 25), whereas qualitative information was examined through thematic analysis. The findings revealed that all four financing sources had statistically significant positive effects on the performance of TVET institutions, with government financing (β = 0.799, p < .001), donor financing (β = 0.829, p < .001), self-financing (β = 0.787, p < .001), and public-private partnerships (β = 0.750, p < .001) demonstrating strong predictive power. Additionally, institutional Governance manifested as a critical contingent variable profoundly modulating the dynamic interplay between financing and institutional performance. The study concluded that strengthening both financing mechanisms and institutional governance was essential for enhancing the performance of TVET institutions. It recommends policy reforms that prioritize adequate, timely, and sustainable funding, alongside improved governance practices, to maximize institutional effectiveness and long-term impact. Future studies should investigate the long-term effects of different financing models related to graduate employability and the quality of training in TVET institutions.