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The primary goal of university education globally is to promote research, knowledge, and innovations instrumental for national development and societal transformation. In line with this goal, East African countries, namely Kenya, Uganda, and Tanzania have invested heavily in university education in the last 60 years since independence. The evidence of this is the increasing number of both private and public universities, and the number of students joining the institutions. While the expansion of university education is to be celebrated, it should not be taken for granted that this expansion indicates development. The purpose of this research was to assess the impact of university education on regional development in the three East African countries, that is, Kenya, Uganda, and Tanzania. Data were collected through historical analyses, database searches on electronic and printed sources, and interviews. The study found out that the three African countries have formulated the goals of education toward the achievement of development and that large budgets have been committed to educational expansion in the university in recent years. However, the impact of the universities in the development of the region expected through research and innovation is minimal because of major challenges that include expansion of access without adequate government funding; compromises quality; graduate unemployability and political interference; students’ unrest and strikes; weaknesses in earlier levels of education; regional, gender, and class inequalities; and misalignment of education, development, and contextual strengths. Proposed future strategies included the calls for governments to enhance regional consultations on development and education, the need for specialization in programs rather than duplication, enhancement of international collaborations and networking, rethinking the role of education in development within given contextual and environmental realities, and good governance and adequate funding of education.