External Financing Fluctuations and Financial Sustainability of Non-Governmental Organizations in Kakamega County, Kenya

The financial sustainability of non-governmental organizations (NGOs) is potentially vulnerable to fluctuations in external financing, particularly in resource-constrained settings where continued access to funding may be uncertain.This study examined the relationship between external financing fluctuations and the financial sustainability of NGOs in Kakamega County, Kenya, drawing on Resource Dependence Theory (RDT).An explanatory research design was adopted, and a census approach was used to target all 69 registered NGOs in the county, of which 67 participated, yielding a response rate of 97.1%.Primary data were collected using semistructured questionnaires and analyzed using Pearson's correlation and linear regression in the Statistical Package for the Social Sciences (SPSS).A positive and statistically significant correlation was reported between external financing fluctuations and financial sustainability (r = 0.619, p < 0.05).Regression analysis also indicated a positive association, with a reported unstandardized regression coefficient of B = 0.321.The regression model was reported to yield R = 0.836, R² = 0.699 and an adjusted R² = 0.680, suggesting that a substantial proportion of the observed variation in financial sustainability was accounted for by the predictors included in the model.These findings suggest that external financing dynamics are relevant to the financial sustainability of NGOs in Kakamega County.However, the direction and magnitude of this relationship should be interpreted in accordance with the operational definition of financing fluctuations and the specification of the regression model.The findings provide a basis for further investigation into how changes in external funding affect the financial resilience of NGOs and underscore the importance of examining financing patterns when assessing organizational sustainability.