Influence of Cost-Benefit Analysis of Digital Investments on Students' Completion Rates in Public Universities in Kenya

Abstract

Universities have invested in digital infrastructure like learning management systems, digital libraries, online registration platforms and virtual learning tools to improve students' completion rates. However, a number of public universities continue to experience low student completion rates, delayed graduation and high dropout rates. This situation has raised concerns about whether the benefits derived from digital investments justify the costs incurred and whether such investments contribute to improved completion rates. Thus, this study examined the influence of cost–benefit analysis of digital investments on students' completion rates in public universities in Kenya. The study adopted a descriptive survey research design. The target population consisted of 20 Chairpersons of Academic Departments, 214 ICT staff and 967 undergraduate students in selected public universities in Kenya, totaling approximately 1,201 respondents. Using stratified and simple random sampling techniques, a sample size of 300 respondents was selected. Data was collected using structured questionnaires, interviews and institutional records. Quantitative data was analyzed using descriptive statistics and inferentially using regression analysis with SPSS (25). There was a significant positive relationship between cost–benefit analysis of digital investments and students' completion rates (r = 0.62, p < 0.05). Regression analysis further
revealed that cost–benefit analysis explained approximately 38% of the variation in students' completion rates (R² = 0.38). Universities that evaluated the financial costs, operational efficiency and academic benefits of digital technologies reported higher levels of timely student completion. It was concluded that effective cost–benefit evaluation of digital investments contributes to student completion rates in public universities. There is need for University management to adopt structured cost–benefit assessment frameworks before implementing digital technologies, allocate adequate funding for digital infrastructure, and continuously monitor the impact of digital systems on student progression.