Higher education in developing countries presents an opportunity both for investment and development, if specific challenges can be overcome. This article looks at the opportunities for higher education in a developing country, Kenya, and how these experiences have enabled an identification of issues that must be dealt with for higher education to grow both as an investment and capacity-building opportunity for developing countries. It offers a brief narrative on the history of higher education in Kenya, and the types of higher education collaborations. Using a case study of a long established transnational education collaborative partnership between INtel College, Kenya, and the University of Sunderland, UK, it explores the framework for such operations and challenges and perspectives of the partnership. Finally, it presents a view of the future of transnational education in a nation which indeed may have relevance in any developing country.