| dc.description.abstract | The objective of this study was to explore the factors influencing the formation and
operation of NGOs in Kenya. It focused on those NGOs with their headquarters in Nairobi.
The number of NGOs operating in Kenya continued to increase during the 1980s and 1990s.
Likewise, the role NGOs are playing in development has also continued to increase during
the same period. At the same time, donors have shifted their funding channels with funding
to NGOs increasing while that of state has been declining.
The government has taken several measures to co-ordinate the NGOs activities culminating
in the passing of the NGO Co-ordination Act in 1991. Under this Act, new NGOS are
required to seek formal registration from the NGO Co-ordination Bureau before they are
allowed to start operations. NGOs are also required to present their project initiatives to the
District Development Committees. The aim of this requirement is to ensure that projects
implemented by NGOs are in line with and complement government development plans.
Further NGOs are required to make annual returns to the NGO Co-ordination Bureau
indicating their funding levels and sources of funds among other things. This means that
government recognizes NGOs as part of its development partners. There is evidence of
collaboration between government and NGOs especially during policy formulation and
implementation of projects. For instance, NGOs were recognized as key players during the
development of the Poverty Reduction Strategy Paper. It is against this background that this study set out to establish the factors influencing the formation and operation of NGOs in
Kenya.
472 NGOs are based in Nairobi. This constituted the population of the study. A random
sample of70 NGOs was selected from this population. The chief executive officers of these
NGOs were requested to fill a questionnaire designed for this study. 40 NGOs filled the
questionnaire. This represented 57% response rate.
The study found out that for new organisations to successfully enter the NGO sector they
need to build their credibility, gain the trust of donors, develop positive relations with target
communities and develop links through which services can reach beneficiaries, among other
factors. These factors act as entry barriers.
Competition among NGOs was rated as moderate by 59% of the NGOs. Analysis of the
level of competition against the sectors in which the NGOs operate, the number of districts
in which they operate and the type of ownership of the NGO revealed similar results. For
instance, competition was rated as moderate by 89% of NGOs operating in less than 5
districts, 83% by NGOs providing relief and welfare services, and 75% of NGOs that are
wholly foreign owned. The moderate level of competition provides impetus for the
formation of new NGOs and enhances successful operation of the existing ones. With regard
to the nature of competition prevalent in the sector, 22 NGOs (64%) indicated that they
compete for donor funds while 22 NGOs (64%) indicated that they compete in provision of
better services to target communiti~s. This shows that for an NGO to successfully operate within this sector, it needs to secure a reliable funding base and provide better services to
target communities.
Co-operation among NGOs is another key for successful operation. All NGOs indicated that
they have co-operated with others in the past and that their objectives for co-operation were
achieved. 48% of the NGOs indicated that they co-operate in doing advocacy, 89% of the
NGOs co-operate in joint implementation of projects while 77% co-operate in sharing of
information. With regard to factors influencing the selection of NGOs that that one cooperates
with, 51% of the NGOs indicated that they consider rated similarity of vision,
mission while 66 % of the NGOs consider the reputation of the organisation as the most
important factors. Whereas the level of competition is rated moderate, co-operation is seen
as the most preferred mode of operation among NGOs.
The study also established that the NGO-Government relations are healthy. 91% of the
NGOs indicated that they have a positive relationship with government. 83% of the NGOs
indicated that the government provides support required that they require although this
support was rated inadequate by 57% of the NGOs.
Donor influence on NGO operations seems to be average. 45% of the NGOs indicated that
the most profound influence of donors is felt on the choice of projects. With regard to the
influence of target communities on operations of NGOs, 62% of the NGOs indicated that
communities have a high influence on their choice of projects, 40% indicated that
communities have a high influence on their timing of projects while 45% indicated that
communities influence on the implementation of projects is high. The study also focused on the perception of Chief Executive Officers (CEOs) ofNGOs on
the current and future state of sector. 49% of the CEOs agreed that the number of NGOs is
likely to continue increasing in the next five years. 64% agreed that the increase of the
number ofNGOs in Kenya has made competition for donor funds intense. 92% ofthe CEOs
agreed that donors mainly fund those NGOs that they trust. 74% indicated that NGOs are
now involved in making development policies while 82% agreed that NGOs are now under
more pressure to show how their projects benefit target communities. However, 46%
disagreed that it has now become easier for new NGOs to obtain registration.
Finally, respondents identified the various challenges that NGOs face in their operations. 10
NGOs identified sustainability of operations, 17 NGOs identified fundraising and 7
identified donor fatigue. Other challenges that NGOs have to contend with include high turn
over of skilled staff, maintaining of professionalism and poor infrastructure. NGOs need to
focus their strategies in overcoming these challenges so as to successfully operate within the
sector.
Overall, the study found out that entry of new NGOs into the NGO sector in Kenya is bound
to continue. This is because the main entry barriers are achievable and the level of
competition in the sector is largely moderate. NGOs identified the main drivers of
competition to be securing of donor funds and provision of better services to target
communities. Co-operation is also a preferred mode of operation among NGOs and most of
the co-operation ventures are successful. The influence of donors on NGOs is seen to be reducing while that of target communities IS increasing. Therefore, NGOs may be
becoming more responsive to the need of the communities they serve. The government-
NGO relations are largely positive but the quality of support the government gives NGOs is
inadequate. The NGO CEOs perceive the NGO sector as undergoing various changes. For
instance, competition for donor funds is likely to become more intense, pressure on NGOs
to show impact of their interventions and number of NGOs is also likely to continue
increasing. The main challenges facing the NGOs in the sector include sustainability of their
operations, fundraising and donor fatigue. This shows that competition for donor funds is
likely to playa key role in determining successful operation of NGO in Kenya in the future. | en |
