Factors affecting financial sustainability of income generating activity projects of non-governmental organisations in Kenya: a study of Compassion International Kenya

Abstract

Kenya like other developing countries all over the world has experienced an emergence of many NGOs both local and international in the recent past. All of these NOOs implementing various income generating activity projects in the country, the question that ranges is, and how financially sustainable are these income generating activity projects? Do they last or these projects collapse as soon as the donor pulls out? The objective of the study was to investigate the factors that affect the fmancial sustainability of NGOs income generating activities in Kenya a case study of compassion international assisted projects. In this respect the study focused on the compassion international assisted projects in Nairobi region.

The research design was descriptive and a survey method was employed using structured questionnaires that were completed by the employees of the sampled compassion assisted projects in Nairobi region. These compassion assisted projects were selected randomly from the 96 registered compassion assisted projects in Nairobi. The data derived was then analyzed using descriptive statistics and presented in form of tables. The independent variables were: project conceptualization, financial systems and funding while the dependent variable was the sustainability of Compassion international income generating activity projects.

The research findings were that the compassion assisted project did not value the project conceptualisation financial systems and funding aspects in their IGA projects hence making them unsustainable. It was recommended that the compassion international assisted projects be facilitated to consider project conceptualisation, fmancial systems and funding aspects to ensure their income generating activity sustainability.