The contribution of university education to sustainable development of society has become one of the most important activities of higher education institutions. After 55 years of independence, it is time to take a critical look at the role of university education in nation building in Kenya. Since independence, access and difficulties of maintaining standards of quality and efficiency with marginal available resources--more recently highlighted by a commission on higher education report--have been some of the key challenges in university education and these have impacted on the sector's contribution to the country's development. Embracing secondary data sources, the purpose of this paper is to explore the contribution that university institutions have played in Kenyan development using a framework of human capital theory. The paper concludes that long-term economic growth can only be achieved through investment in a highly skilled workforce and university education is particularly critical in this regard.