E-Learning is globally recognized as a significant strategy in improving relevancy, efficiency, costeffectiveness, and quality of higher education. The paper presents a discussion of Information Communication Technology (ICT) infrastructure capacity influences on e-Learning utilization in instruction in Kenyan universities, with a view to determining strategies that universities employ to enhance e-Learning utilization. It opines that e-Learning has not been very popular as a method for instruction in universities, due to limited institutional ICT infrastructure capacities to fully implement e-Learning. The study used the mixed methods research design methodology to debate, reflect, critique, and discuss institutional capacities by universities in utilizing e-Learning in instruction. The reviewed different data sources, borrowed and immensely used government publications, e-Learning books, journals and research articles were used in document analysis. The researchers also used own intuitive experience and knowledge in e-Learning utilization in instruction. E-Learning utilization demands for collaborative effort between government, universities, faculty and students, as well us bodies like the Commission for University Education (CUE). It was found that there are several major barriers to institutional capacities of universities in utilizing e-Learning in instruction. First, was the procurement of technology and sourcing of funds. It was seen that the total capitation for funding the programs was as low as 3%. Secondly, internal barriers arising from within individual institutions and faculty. Majority of the universities for a long time have relied on face to face interaction between students and faculty. However, in the wake of the Covid-19 pandemic, all learning institutions including universities, colleges and schools were forced to close down and seek alternative methods of instruction. It was found that most universities have moderate capacities to utilize e-Learning, but are yet to exploit its full potential. The study also established that nearly all the faculty were aware and used e-Learning for instruction but to a limited extent. Findings revealed that faculty prefer blended mode of instruction, but complained of limited bandwidths and poor connectivity for faculty and students far off from the university campuses. To mitigate the challenge, universities must strive to train and retrain the faculty on how to use technology and not about technology. Based on the review carried out in six universities; all the universities have some technologies in place including Computer Based Learning, Virtual Learning, video conferencing, content delivery via networks, use of memory sticks and emails. All have an e-Learning portal, module and platforms used for e-Learning. Majority of the university dons consider bandwidth, networking and a reliable Learning management system (LMS) as critical infrastructure for e-Learning utilization. Development and improved utilization of e-Learning is practically possible with enhanced institutional capacities. Enhanced use implies enhanced information transfer, reduced movement of faculty and students allow adequate time for faculty to invest in innovative teaching; enable faster transfer of information while students actively learn on their own. This would help bridge the gap and reduce pressure on existing resources. E-Learning could be the solution to the problem of increased student enrolment and reduced quality of university education. However, to ease the burden of financing university programs, public- private sector partnerships need to be encouraged. The study established that universities must provide students with affordable internet. To a large extent it delves into possible benefits and opportunities that would arise if universities realize and utilize fully the available institutional infrastructure and e-Learning resources. Demand is made upon the universities to develop and operationalize e-Learning policy and invest more in capacity building, set up infrastructure to deliver instruction online.