Donor Funding Practices and Financial Sustainability of Donor Aided Projects in World Vision Kenya

Abstract

Donor agencies play a key role in developing life changing projects in arid and semi-arid which is of great importance and cannot be ignored. Over the years, third world countries have registered a significant increase in donor agencies activities. Not all of these development projects, undertaken by these donor agencies, are sustainable as some have been noted to perform dismally while others become non-operational on termination of donor support (Adera, 2012). Few studies have been undertaken to establish sustainability of projects funded by donors, this is despite there being evidence on the poor performance of these projects with many becoming non-operational immediately after donors withdrawal. This study was intended at filling this gap by examining donor funded projects and their financial sustainability. The study determined the effect of accessibility of donor funding, donor training, and donor funding policies on financial sustainability of donor funded projects. The study concentrated on the principle agency theory, resource based theory and complexity theory. Descriptive research design was adopted in the study. The target population included 10 projects implemented by world vision Kenya in five counties. A sample size of 130 employees was selected using stratified sampling technique. Questionnaires were used for data collection from the respondents. Descriptive statistics such as mean, standard deviation, skewness and kurtosis and inferential statistics such as Pearson correlation and multiple regression model were used for data analysis. Project implementers and donors will benefit from the study by focusing on key factors affecting project sustainability in the long run even after donor withdraws.