This case study examines the role of higher education institutions as regional economic anchors in the Kenyan coastal region. Focusing on Pwani University (PU) and the Technical University of Mombasa (TUM), the research analyzes how their transition to fully chartered universities in 2013 has catalyzed urban transformation, human capital development, and infrastructure development. Utilizing a qualitative comparative case study design and documentary analysis including the Auditor-General’s reports and County Integrated Development Plans, the study identifies a significant "multiplier effect" despite institutional financial challenges. Findings suggest that these universities stabilize local economies against seasonal fluctuations in tourism and provide the research infrastructure necessary for Kenya’s Blue Economy. Despite extensive research on Kenyan universities, limited research has been done to examine universities as economic anchors in the coastal region. The paper concludes by recommending the establishment of similar university anchors across all coastal counties to mitigate regional inequality.