This study looks at educational policy in Kenya, focusing on the increase in private higher education. Kenya has a relatively long history of private higher education, with the first establishment of a private university in 1969. It was in the 1990s that Kenyan education policy particularly began to favour the setting up of private higher education institutions. The study analyzes policy changes in Kenya in favour of the private sector, as well as trends and patterns in the expansion of private higher education institutions, and sources of financing and management. There are two main types of such institutions in Kenya: for-profit institutions offering courses in limited, but market-friendly, subject areas, drawing their income mainly from student fees, and those sponsored by religious organizations.