Unhooking the Tentacles of Dependency: Challenges and Opportunities of Public Benefits Organizations in Informal Settlements in Nairobi County, Kenya
Journal Title: Africa International Journal of Management Education and Governance - Year 2017, Vol 2, Issue 3
Abstract
Financial sustainability has always been a dream for every PBO serving in Kenya and by extension in Africa. Non-Governmental Organizations (NGOs) in Kenya mostly depend on foreign funding. Studies expose the declining state of foreign funding coupled with the Miscellaneous Amendment Act of 2013 both of which impose a strain to PBOs. This paper explored the challenges faced by PBOs in implementing financial sustainability strategies in Nairobi informal settlements in Kenya. It was concurrent mixed methods approach study that employed a descriptive design and was carried out between January and August 2015. The study targeted various PBO stakeholders who were randomly and purposively sampled constituting a sample size of 304. Structured questions and interviews were the methods used to collect data while questionnaires and interview guides were tools used to collect data. Descriptive statistics was used to analyze quantitative data while qualitative data was analyzed using content analysis in themes. The findings showed that 90% of the PBOs that were sampled faced challenges in implementing their financial sustainability strategies while 9.5% were not facing challenges in implementing their financial sustainability strategies. Most of the PBOs financial sustainability strategies faced a challenge of lack of commitment, this was represented by 47.6%, while 38.1% faced lack of capital to establish the financial sustainability strategies, 9.5% cited slow growth of the financial suitability initiatives while 4.8% attributed to government laws and policies. The study recommended that PBOs should ensure they exhaustively engage stakeholders in program design, implementation and resource mobilization to enhance commitment and ownership of the PBO programs and financial sustainability strategies, develop fundraising policies which will institutionalize resource mobilization. The government being a major stakeholder should explore ways of partnering and funding effective and efficient PBOs. It should review policies and laws that restrict PBOs from doing business and enable PBOs to start business related projects that will consistently generate income for the PBOs. Parliament should also amend the CDF Act to enable CDF- PBO partnerships and also review the tax laws to allow tax relief for cooperate entities that financially support results oriented PBOs
Authors and Affiliations
Timothy Osiru Okatta, Wilkins Wilkins
Keywords
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