Masters in Business Administration (MBA) is not just an acknowledgement of mastery of business. It is a means of professional development that lays emphasis on real-life application of business theories. Many students rush to apply for it right after completing their undergraduate course, while those in the workplace use it to advance their careers. Is applying for an MBA really an investment, or is it a liability?
Some universities in Kenya offer an MBA among them University of Nairobi, Strathmore University and United States International University (USIU). The total fees payable for the duration of the course range from KES 342,000 to KES 1,200,000. Below is a table outlining the fee schedule and duration of the study.
Why take up the course?
The reasons range from career advancement to increased pay. The latter forms the core reason why most take up the course. Mesmerized by the amount of money “dished out” to individuals with mastery of the business field and the status it implies, many chase this elusive dream. For many, the salaries paid are crucial factors to consider when calculating the returns on investing in an MBA. That lump sums are paid is not entirely false. A quick look at Financial Times Top 100 Post-MBA salary should provide enough proof of this. According to the survey, graduate students from Stanford Graduate School of Business earn US $192,179 (approximately KES 16.5 Million) making the monthly salary a whooping KES 1.37 Million. The lowest paid graduate student hails from S P Jain School of Global Management. He/she earns US $79,809 (approximately KES 6,863,574), making the monthly salary KES 571,964. Such income is guaranteed only if you have studied in the listed universities.
How much will an MBA earn you in Kenya? For starters, it guarantees you job security. It is not uncommon to find undergraduates turned down because their qualifications (or lack of). Some will opt to pursue an MBA in hopes of making it into the employment zone. This would explain the large output of post-graduates every year from various universities. The University of Nairobi alone sees over 1000 students graduate with a Masters in their field of study. That very competitive edge is nullified when they apply for jobs. Lack of experience and excess supply only serves to decrease their negotiation power. The most they can do is bargain for a reasonable salary (akin to that of undergraduates). The intensity that the MBA carried with it and the knowledge imparted results in job security at most. In this case, it is more of a liability than an investment as it will take many months to recover the fees paid. Promotion varies according to experience and performance. The chances of increased pay may not be as planned.
That does not mean that applying for it will not benefit you. It all depends on the goal you want to achieve and the importance of an MBA in it. Truth is, a Masters in Business Administration is quickly becoming the new minimum requirement. As for its investment potential or liability probability, that’s a decision ultimately in your hands.