Globalization process and growth of knowledge economy with increasing dependency on innovative information technology necessitated an expansion of higher education institution. With the country counting on its demographic dividend, the increase in number of students seeking university degree is putting pressure on the higher education sector to expand. Government funding in higher education is not sufficient to meet the growing demand, which has led to the establishment and mushrooming growth of private higher education institutions. Private higher education institutions are established by philanthropic, private business establishments, religious and for-profit organizations. The increase in the number of institutions carries with it serious challenges ahead; thus, the article discusses the challenges ahead of these private engineering institutions.