Influence of financial accountability on financial sustainability of Non-Government Organizations in Nairobi County, Kenya
Date
2021
Authors
Wanjohi, Humphry
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
NGOs play an important part in Kenya's health care system, public governance, social aid and welfare, conservation, economic growth, and development by contributing around Ksh. 80 billion to the country's GDP each year. Most local NGOs in Kenya still lack a strong financial base, and as a result, many of them run out of money after only a few years. This study therefore seeks to establish the influence of financial accountability on financial sustainability of non‐government organizations in Nairobi County, Kenya. Specifically, the study sought to examine the influence of financial planning on financial sustainability of non‐government organizations in Nairobi County, Kenya. To establish the influence of financial monitoring and evaluation on financial sustainability of non-government organizations in Nairobi county, Kenya. To assess the influence of financial controls on financial sustainability of non-government organization in Nairobi county, Kenya. This study was anchored on resource mobilization theory and resource dependency theory. The study adopted a descriptive survey research design. The target population which was the unit of analysis was NGOs in Nairobi County, Kenya. According to the Nairobi County 2018 report, there are 325 registered NGOs in Nairobi County. From the unit of analysis, the research identified the unit of observation which was the 989 employees from the NGOs selected. The study sample size was 285 respondents which was picked using stratified random sampling. The questionnaire was the selected instrument or tool for data collection for the study. Quantitative data was collected and analyzed by the use of descriptive statistics, this include; percentages, means, standard deviations and frequencies. The information was displayed by use of bar charts, tables, graphs and pie charts. Partial regression was done to establish the influence of financial accountability on financial sustainability of non‐government organizations in Nairobi County, Kenya. The study found that financial planning was statistically significant to financial sustainability of non‐government organizations (β=0.446, p=0.001). The study found that financial monitoring and evaluation had a strong positive correlation with financial sustainability of non‐government organization (β=0.501, p=0.001). The study revealed that a strong positive correlation between financial controls and financial sustainability of non‐government organizations (β=0.459, p=0.000). The study recommends that the management of NGOs should work on improving financial planning with the aim of improving financial sustainability of the NGOs. The study also recommends that the management of NGOs should work on improving practices of financial monitoring and evaluation. This can be done by conducting frequent financial monitoring and evaluation activities. The study recommends that the management of NGOs should improve on their financial control’s practices. This can be done by using efficient communication systems and holding individuals in the organization accountable.
Description
A Thesis submitted in partial fulfillment of the requirement for the Degree of Master of Commerce at Strathmore University
Keywords
Financial accountability, Financial sustainability, Non-Government Organizations_Nairobi County, Kenya