The study attempts to identify the major problems of harnessing virtual information resources in a developing country like Kenya. The African Virtual University has been dealt with as a case study. A number of problems are identified which need to be solved so that the African Virtual University may achieve its objectives. The nature and characteristics of a virtual organization are discussed, as is the appropriateness and/or inappropriateness of a virtual university in a developing country such as Kenya. A brief history and background of the African Virtual University is given and the participating countries are identified in the study. The study methods used are highlighted.