Student Enrolment and Financial Sustainability Among Private Universities in Uganda: A Case of Africa Renewal University

Financial sustainability is a significant concern for private universities because continued institutional operations depend on reliable revenue, effective resource management and the ability to meet recurrent and strategic financial obligations. In Uganda, evidence indicates persistent financial sustainability challenges among private universities, with only a minority demonstrating sustainable financial positions (Nalwoga, 2021). Although student enrolment is an important source of tuition revenue, enrolment numbers alone may not guarantee financial sustainability because students differ in their ability to pay, fee compliance, retention and contribution to realised institutional revenue. The study examined the relationship between student enrolment and financial sustainability at Africa Renewal University (AfRU). Specifically, it assessed the relationship between the financial quality of enrolled students and financial sustainability; examined the relationship between student retention and financial sustainability; and developed a conceptual model of financial sustainability based on financial quality of enrolment and student retention. The study was guided by Resource Dependence Theory (Pfeffer & Salancik, 1978) and Tinto’s Student Integration Theory (Tinto, 1975). A conceptual case study and desk review design was adopted, using secondary data from AfRU enrolment records, retention information, financial reports, fee-payment records and relevant published literature. The findings indicate that the financial quality of enrolment is important because the financial value of students depends on their ability and willingness to meet tuition obligations and the extent to which assessed fees are converted into realised revenue. Student retention was also identified as an important factor because continued enrolment supports predictable tuition revenue and reduces revenue uncertainty associated with student attrition. The study further identifies fee collection, cash flow, resource allocation and cost management as important mechanisms connecting enrolment and retention to financial sustainability. The study concludes that AfRU’s financial sustainability should be approached as an integrated process involving financially productive enrolment, student retention, effective fee collection, stable cash flow and disciplined cost management. A conceptual model is proposed to guide institutional financial planning and sustainability.