This article discusses some of the key challenges and points of tension pertaining to leadership in higher education in Kenya. Effective leadership approaches are discussed including an exploration of why effective leadership is more important in Kenyan public higher education now than ever. Given the complex context within which public higher education leaders in Kenya now work and the challenges posed by recent changes, this article argues that the institutions need to develop new models of leadership to make sense of the highly complex political, economic and cultural landscapes of the modern world in general and Kenyan society in particular. In addition, this article suggests that "action centred" dimensions of leadership could be applicable and that transformational leadership with its emphasis on distributed leadership styles and collegial decision-making may offer such model.