Malcolm Kerr was killed by members of the Shia Lebanese militia called Islamic Jihad on the morning of January 18, 1984 at the age of 52 while he was serving as president of the American University of Beirut. He was shot twice in the back of his head, by gunmen using suppressed handguns, in the hallway outside his office. Kerr was 18 years old at the time, and a college freshman; regarding his father's death, he has said: "Before my father was killed, my life was impenetrable. Bad things happened to other people." The Kerr family sued the Iranian government under the Antiterrorism and Effective Death Penalty Act of 1996. While warming up with the Arizona Wildcats for a game at arch-rival Arizona State in 1988, Kerr had to deal with many ASU Sun Devil fans in the crowd chanting "PLO" and "your father's history." Though tearful, Kerr led the Wildcats to victory, scoring 20 points in the first half, making all six of his three-point attempts. The athletic director of Arizona State, Charles Harris, sent a letter of apology to Kerr a few days later.
Kerr graduated from the University of Arizona in 1988 with a Bachelor of General Studies, with emphasis on history, sociology and English.
Minimally recruited out of high school, Kerr played basketball for the University of Arizona from 1983 to 1988. In the summer of 1986, Kerr was named to the USA Basketball team that competed in the FIBA World Championship in Spain. The team was the last American Men's Senior Team composed strictly of amateur players to capture a gold medal. He blew out his knee in the tournament, usually a career-ending injury, forcing him to miss an entire season (1986–87) at Arizona. He helped the Wildcats reach the Final Four of the NCAA Division I basketball tournament in 1988 along with fellow All-American teammate Sean Elliott. Kerr also set an NCAA record for 3-point percentage in a season (114–199, 57.3%).