Nike co-founder Phil Knight and his wife Penny Knight have committed $1 billion (about Sh129.4 billion) to the University of Oregon to establish a new engineering college, delivering the largest donation in the university's history and one of the biggest philanthropic gifts made to an American public university.

The university intends to use the money to create the Knight College of Engineering at its Phil and Penny Knight Campus for Accelerating Scientific Impact in Eugene, Oregon. The investment will allow the institution to expand beyond its existing engineering programmes and train significantly more engineers and applied scientists in areas where employers are reporting growing demand for technical workers.

University officials expect the new college to expand programmes in bioengineering and other engineering disciplines while recruiting additional faculty and researchers. It will also strengthen connections between academic research and companies seeking to turn scientific discoveries into commercial products and technologies.

The Sh129.4 billion commitment builds on more than a decade of investment by the Knights in scientific research at the university. The couple previously made two commitments of $500 million each, equivalent to about Sh64.7 billion apiece, in 2016 and 2021 towards developing and expanding the Knight Campus.

Their latest contribution brings their total commitments towards the Knight Campus to approximately $2 billion, or Sh258.7 billion at current exchange rates, making the project one of the largest examples of private philanthropic support for science and engineering at a US public university.

Phil Knight's connection to the University of Oregon stretches back decades. The Nike co-founder graduated from the institution in 1959 before eventually building the sportswear company that would become one of the world's most recognisable consumer brands.

Knight's time at Oregon also played an important role in Nike's origins. He competed as a middle-distance runner under legendary track coach Bill Bowerman, with whom he later co-founded the business that became Nike.

The new engineering college represents a substantial expansion of the Knights' relationship with their alma mater beyond athletics. The university has increasingly sought to strengthen its scientific research and engineering capabilities through the Knight Campus, which was created to accelerate the process of moving academic discoveries into practical applications.

Since its establishment, the campus has created the university's first engineering department and developed 17 research laboratories involving more than 500 students and trainees annually. The next phase is expected to significantly increase those numbers as the institution recruits additional academics and expands its engineering programmes.

University officials say the engineering expansion could more than double the number of faculty members and students based at the Knight Campus. Scholarships are also expected to form part of the investment, allowing the university to recruit students from a wider range of financial backgrounds.

The timing is significant because Oregon, like other parts of the United States, is experiencing demand for engineering talent across industries including biotechnology, manufacturing, artificial intelligence and life sciences. University officials estimate that Oregon alone faces about 2,500 engineering job openings annually, with employers identifying engineers among some of the most difficult workers to recruit.

Expanding the university's engineering capacity could therefore have an economic impact beyond the campus. The institution estimates the project could support an average of 867 jobs annually over 15 years and generate approximately $1.2 billion (Sh155.2 billion) in cumulative labour income.

The university also estimates the expansion could contribute about $119 million (Sh15.4 billion) in state and local taxes, highlighting the scale of economic activity expected to accompany the development of the new college.

The gift arrives at a challenging time for American higher education, with universities facing pressure from changing enrolment patterns, budget constraints and uncertainty surrounding federal research funding. The University of Oregon itself is dealing with a budget shortfall, although the Knight donation is specifically targeted towards the engineering initiative rather than unrestricted funding that can simply be redirected towards general university expenses.

The $1 billion (Sh129.4 billion) commitment is also part of an extraordinary period of philanthropy by Phil and Penny Knight. The couple recently committed $1.1 billion (about Sh142.3 billion) to Providence St. Vincent Medical Center and Providence Heart Institute, while an earlier $2 billion (about Sh258.7 billion) pledge supported cancer research at Oregon Health & Science University.

For the University of Oregon, however, the latest gift could permanently reshape the institution. A university historically known internationally for athletics and its close association with Nike is now preparing to substantially increase its presence in engineering, scientific research and technology.

If the new college develops as planned, Knight's latest contribution may ultimately influence not only the physical size of the university but also the kinds of students, researchers, companies and industries that are drawn to Oregon in the decades ahead.