Abstract: This study set out to establish the determinants of financial sustainability of community based organizations in Kenya with a specific focus on community based organizations in Kibera Slum, Kibra Constituency. The study used a descriptive research design. The units of analysis were the 72 community based organizations in Kibera Slums. The study utilized purposive sampling technique to select 2 respondents from each of the community-based organizations in Kibera. As such the units of observation were 144. The study utilized Slovin’s Formula of sampling where 106 respondents were selected. The study collected primary data using a questionnaire. Prior to the actual study, a pilot study was conducted on among 15 respondents purposively chosen from the staff working in other CBOs in Nairobi County. To ensure that the questionnaire was valid, input of experts who included the supervisor and other scholars was sought. Internal consistency method will be tested using Cronbach’s Alpha. Data collected was analyzed using mean, frequency, percentages and standard deviation. The findings were presented using tables and charts. In order to estimate the rates of change in the dependent variable as a result of a unit change in each explanatory variable, the study carried out a multiple linear regression analysis. The study established that most of the CBOs in the area are relatively sustainable financially while a significant number are less sustainable and struggling financially. The study found that financial skills, budgetary control, diversified sources of income, better management of donors affected sustainability of CBOs in Kibera slums to a great extent. The study concludes that financial skills are paramount in financial sustainability and current, accurate and relevant financial data ensures sound decision-making. The study thus recommends that the CBOs need to put more emphasis on engaging competent employees in financial controls, internal controls, financial planning/budgeting, financial reporting and financial tracking. The study recommends that there is need to develop a clear policy on budget control processes in the CBOs. There is need to diversify the income generating sources of CBOs for their financial sustainability. The management of CBOs ought to make sure that they sustain a good relationship with stakeholders providing financial support especially through better information management, high level of accountability and strong communication.
Keywords: Financial Sustainability, Community Based organizations, financial skills and income diversification.
Title: Determinants of Financial Sustainability of Community Based Organizations in Kenya: A Case of Community Based Organizations in Kibera Slum in Kibra Constituency
Author: Anne Wangari Maina, Dr. George Ochiri
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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