Abstract: Institutions of higher learning, from the start of their history, have experienced internal and external pressures to meet the needs of stakeholders, needs that go well beyond the pursuit of academic study for the purpose of adding to a knowledge base. The study sought to determine the influence of market penetration strategy on competitive advantage at the University of Nairobi. The justification was driven by the higher education sector in Kenya which has been undergoing rapidly changing environmental conditions in terms of the regulatory framework and competition. The study used descriptive research design. The target population was 400 administrators while the sample size was 40 administrators. The study used primary data; original information was collected from a first-hand experience. The data from the study was analyzed qualitatively and quantitatively using percentages, means and frequency distribution with the aid of Statistical Package for Social Sciences (SPSS). Since data was descriptive, variants such as means, frequencies and percentages will used to describe the findings of the study. Bivariate – ANOVA statistical data analytical technique was adopted to analyze the strategies used by universities in Nairobi County to cope with competition. The data from the study was presented using inferential and descriptive statistical methods. These were percentages, charts and tables, regression and correlation. Descriptive statistical method enables understanding of data through summary values and graphical presentations. The results from the study revealed that market penetration strategy and competitive advantage were positively and significant related. Based on the research findings the study recommended that public universities should adopt market penetration strategy so as to increase the competitive advantage.