Influence of Strategic Direction on Financial Sustainability of NGOs in Kenya

Abstract

The purpose of this research was to determine the influence of strategic direction on financial sustainability of NGOs in Kenya. The study was anchored on strategic leadership theory and utilized descriptive correlational research design. The study targeted active local NGOs based on the records of NGOs Co-ordination Board in 2019. The study population consisted of 6,028 members of strategic leadership teams (SLTs). A sample of 413 was drawn from the total population using stratified random sampling technique. Data was collected through self-administered questionnaire. Correlation results revealed that strategic direction had a positive and significant relationship with financial sustainability. Ordinal logistic regression analysis indicated a good model, which explained 8.7% of the variance in financial sustainability, and significantly predicted financial sustainability (β₁ = -2.086, p ≤ .05). Hence, strategic direction has significant influence on financial sustainability. The study recommends that strategic direction is emphasized in organizational planning in enhancing financial sustainability.