Evaluation of non governmental organizations(NGO's) borrowing strategies from banks in Kenya
Date
2010
Authors
Gitau, Stephen
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The study was conducted in the months of January and February 2009 in Nairobi. There are about five thousand, five hundred registered NGOs in Kenya that operate under the regulation and supervision of the NGO council of Kenya, registered under the NGO coordination Act of 1990. The NGOs areas of operation are different but are all on provision of social services to the public. The general nature of operation of NGOs in Kenya is that they are not-for-profit organizations and there is past general evidence from literature that the NGOs have not had substantial bank loan awards as compared to other corporates or sectors in Kenya. The burning question is why the NGOs have not gone into borrowing from commercial banks in Kenya as a source of funding. The main objective of the study was therefore to evaluate and assess why NGOs have limited borrowing from banks in Kenya. The study was exploratory in nature and the sampled respondents were senior NGO officials. A structured questionnaire, with both pre-coded and open ended questions was designed to collect the data. The questionnaire was related to the formulated hypotheses and the research questions. Both the formulated hypotheses and the research questions pertained to the literature review examined. The main finding of the study was that banks deny NGOs funding due to the nature of their activities, despite the banks and NGOs having a good working relationship. The NGOs have different sources of income and with decline of such income they would engage in borrowing from the banks. The NGOs contribute vastly to the economy of a country and act as multilateral organs of the Government in the social aspect. There is a huge untapped market and one key recommendation to banks would be to develop special packages for the NGOs. Key Words: NGOs, Banks, Loans, Borrowing
Description
Partial fulfillment for award of the degree of Master of Business Administration
Keywords
Commercial Credit--Kenya--NGO, NGO--Kenya--Management, NGO--Kenya--Finance
Citation
HF3754.5.K4G58 2010