Institutions of higher learning have been challenged to embrace innovation in order to increase their revenues.
Speaking during the University of Nairobi’s 57th graduation ceremony on Friday, Vice Chancellor Peter Mbithi said the higher education sector in Kenya has experienced challenges caused by globalisation, which has condensed revenue avenues.
"The era of globalisation has been marked by fierce competition and shrinking revenue opportunities.
"However, there are also abundant opportunities that we can harness from the extensive changes," Prof Mbithi said.
The VC also recommended that universities should facilitate environmental conservation to build national capacity for exploitation of natural resources and forge partnerships among themselves.
"There is value in the industry working together with universities in developing local and sustainable solutions to the problems facing our country.
"Global research universities are identified by their distinct contribution in providing thought leadership in policy formulation, research innovations, growth in incomes and environmental conservation," he said.
Out of the 3,645 students, 48 being conferred with doctoral degrees (PhDs), 355 with master's degree, 2,568 bachelor's degree, 13 postgraduate diplomas and 674 with diplomas.
They were drawn from the Colleges of Agriculture and Veterinary Sciences, Architecture and Engineering, Biological and Physical Sciences, Education and External Studies, School of Law and School of Nursing.
Prof Mbithi challenged the graduates to be transformative leaders.
He added that the University of Nairobi has continued to maintain its leadership position in offering quality education in the region.