SHIFTING DONOR PRIORITIES AND FINANCIAL SUSTAINABILITY OF NON-GOVERNMENTAL ORGANIZATIONS IN KAKAMEGA COUNTY, KENYA​

This study examined the effect of shifting donor priorities on the financial sustainability of Non-Governmental Organizations (NGOs) in Kakamega County, Kenya. The specific aim was to determine the effect of change in donor funding priorities on the financial sustainability of NGOs. The study used agency theory as a conceptual framework and employed an explanatory sequential research design. In the sampling procedure, census technique was applied, whereby all 69 NGOs registered in Kakamega County were taken into consideration and 67 of them responded to the questionnaire, resulting into 97.1% response rate. Data collection was done through semi-structured questionnaires and analyzed using Pearson correlation and regression analysis with the help of SPSS software.

The results revealed that change in donor priorities has a positive and significant effect on the financial sustainability of NGOs. Through Pearson correlation analysis, there was a highly significant relationship between change in donor priorities and financial sustainability (r = 0.638, p < 0.05). The regression analysis results indicated that change in donor priorities positively predicted financial sustainability (B = 0.182, β = 0.482, p = 0.001). The regression model accounted for 69.9% of variance in financial sustainability (R = 0.836, R² = 0.699, Adjusted R² = 0.680).