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Grace Wanjiru Waititu - Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Richard Ngali, Ph.D., CFE - Jomo Kenyatta University of Agriculture and Technology, Kenya

Dr. Kimani E. Maina, Ph.D - Jomo Kenyatta University of Agriculture and Technology, Kenya


Resource Mobilization is a very important exercise in any organization, the process ensures that there is continuation of service provision by an organization to its clients. However, resource mobilization in donor-funded organizations in Kenya has experienced many challenges over the years with many of them receiving budget cuts as compared to previous years. This study intended to establish the influence of financial management practices on resource mobilization of donor-funded organizations in Kenya. The specific objectives of this study were the influence of budgeting, financial control, financial reporting, and cash management on resource mobilization of donor funded organisations in Kenya. The study was anchored on budgeting theory, agency theory, contingency theory, and cash management theory. The descriptive research design was adopted for this study. The target population for this study was all the 161 international NGOs in Nairobi County. The unit analysis for the study was 1449 senior managers from the department of internal audit, finance and research. A sample size of 131 was established using the stratified random sampling. The study used both primary and secondary data. Primary data was collected using questionnaires while secondary data was collected using a data collection sheet. This study utilized the descriptive and inferential statistics. Quantitative data was descriptively analyzed by use of measures of central tendencies and measures of dispersion. The measure of central tendency was the arithmetic mean while standard deviation was the measure of dispersion for data obtained from interval scales and ratio scales. Multiple regression analysis was used to analyze inferential data. The study information was displayed in tables. The study found that the control of the budget activities is done by the head of departments, the budgets have clear goals and objectives, budget deviations are reported to budget committee/executives, the organization has long term and short term budget plans, and managers always take timely corrective actions when adverse variances are reported. The research was not certain whether or not the internal auditor performs his duties with a greater degree of autonomy and independence from management. The study found that expenditure outside the budget requires directors approval and must be fully justified, the NGO prepares budgets on annual basis that guide spending for the NGO, and there is full and accurate reporting on the financial planning to the stakeholders. The study was not sure whether debtors’ collection period is regularly calculated. The study concluded that cash management operations (β=0.804) had the greatest effect on resource mobilization in donor funded organizations in Kenya, followed by financial reporting (β=0.735) then budgeting (β=0.684) while financial control (β=0.586) had the least effect on resource mobilization in donor funded organizations in Kenya. The study suggests that the donor-funded organizations should consider implementing sound budgeting practices which should be contemplated in the firms’ legislative structure. The study recommends that donor-funded organizations should prepare both short term and long term budgets to avoid the focus on short term events since the projects undertaken are continuous in nature. The study further recommends that the donor-funded organizations in Kenya should keep on availing finances as well as re-assessing the financial policies.

Full Length Research (PDF Format)