This paper reports on an empirical study conducted among a sample 133 employees of private higher education institution in Kenya, to examine the relationship between perceived service quality (SQ) and customer satisfaction (CS), using the HEdPERF instrument. Although service quality was measured using six dimensions namely: academic, non-academic, reputation, access, programmes and understanding, by using structural equation modelling (SEM), the six SQ dimensions needed to be collapsed into four, since these were significant to the employees of private universities. The employee is viewed as a ‘customer’ of the private higher education institution, thus service quality refers to the employee-customers’ perceptions. The results partially support the proposed conceptual model that non-academic, access, academic and reputation dimensions have a positive and significant influence on the employees’ SQ perceptions, and in turn influences their satisfaction. It can be inferred from the findings that university quality should not only be looked at in terms of academic activities alone, as non-academic aspects also need to be considered since they are deemed important to the employees. Since universities are in both national and international competition, they (management) should aim at ensuring that all services related to organizational life like physical, implicit and explicit are delivered to acceptable standards to realize increased satisfaction
