Influence of Financial Audit Mechanisms Related to Student Fees on Students’ Participation in University Education at the University of Nairobi, Kenya
DOI:
https://doi.org/10.47604/ajep.3951Keywords:
Financial Accountability, Financial Audit, Student Fees, Students' Participation, University EducationAbstract
Purpose: The goal of this study is to examine the influence of financial audit mechanisms related to student fees on students' participation in university education at the University of Nairobi, Kenya. The study sought to investigate the extent to which internal audit mechanisms, external audit oversight, audit committee effectiveness, and financial reporting transparency shape students' continuity of enrollment and engagement in university programs.
Methodology: The study adopted a mixed-methods research design anchored on Agency Theory by Jensen and Meckling (1976) and Stakeholder Theory by Freeman (1984). The target population comprised 30,015 individuals, including students, departmental heads, and Ministry of Education officers. A sample of 393 respondents was selected using Krejcie and Morgan's formula, with stratified random sampling applied to students and purposive sampling applied to departmental heads and Ministry of Education officers. Data were collected through questionnaires, interviews, and document analysis. Validity was ensured through expert review and pilot testing, while reliability was confirmed using Cronbach's Alpha (α ≥ 0.7). Quantitative data were analyzed using descriptive statistics, correlation, and regression analysis in SPSS, while qualitative data were analyzed thematically.
Findings: The study revealed that a majority of respondents perceived internal audit mechanisms as effective in ensuring transparency in the management of higher education funding, with 73.3% acknowledging their role in identifying and preventing financial irregularities. However, 54.8% of respondents felt that audit findings and recommendations were not promptly addressed by university management, and 55.6% perceived audit processes as lacking transparency and accessibility to stakeholders. The correlation analysis established a strong, statistically significant, and positive relationship between financial audit of fees paid and the management of higher education funding and students' participation (r = .652; p = .000), leading to rejection of the null hypothesis.
Unique Contribution to Theory, Practice and Policy: Anchored on Agency Theory and Stakeholder Theory, the study validated the applicability of these frameworks in explaining how financial audit mechanisms reduce information asymmetry and protect student stakeholder interests within university financial governance. For practice, the study recommends that university management strengthen timelines for implementing audit recommendations and improve the accessibility of audit information to students. For policy, the study recommends that the Ministry of Education and university governing councils establish clear regulatory guidelines mandating timely disclosure of audit findings related to student fees, with defined response periods for management action, to safeguard student participation across public universities in Kenya.
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Copyright (c) 2026 Lotukon Joel Loritee, Prof. Dorothy Kyalo, Dr. John Ouru Nyaegah
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