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The main purpose of this study was to explore current issues surrounding Ethiopian private higher education institutions (PHEIs) and assess the impact of regulatory practices on the smooth operation of PHEIs. The findings of the study revealed that PHEIs are making significant contribution towards increasing access to higher education and creating employment opportunities. However, there were concerns among stakeholders on the quality of education provided by PHEIs. The application of government regulatory frameworks was also found to be more stringent on PHEIs than on their counterparts in the public sector.