The economic sector cannot afford to operate in isolation and must foster linkages with higher education. This is because it requires qualified manpower to provide necessary services. Universities on the other hand, cannot ignore the economic sector which is the consumer of the knowledge and products generated. Strategies used to enhance the linkage between higher education and economic sector must revolve around curriculum orientation, teaching and learning focus, industrial attachment focus and collaborative research. The heightened debate on competitive forces attempt to explain why some firms perform better than others within the same industry. While resource based view emphasizes the role of firm resources, five forces model focuses on industry forces as the critical determinants of firm performance. However, most scholars attribute the difference in firm performance to both the two perspectives. Thus, it has been difficult to distinguish the relative role of competitive forces in explaining firm performance. This study investigated the moderating role of competitive forces on the relationship between linkage strategies and performance of higher education in Kenyan context.