Influence of Stakeholder Involvement in M&E on the Performance of Donor-Funded Projects in Informal Settlements in Kisumu Central Sub-County, Kisumu County, Kenya

Stakeholder engagement and participatory approaches influence the effectiveness of donor-funded projects. Participatory Monitoring and Evaluation (PM&E) methodologies ensure that local communities play an active role in decision-making, leading to more sustainable outcomes. Given the complex socio-political landscape of Kisumu Central Sub-County, there is a critical need for inclusive and context-responsive project monitoring strategies. Initiatives that have integrated local leaders, youth groups, and women-led organizations into their M&E processes tend to achieve stronger community buy-in, improved continuity, and more impactful outcomes. The current study explored the influence of stakeholder involvement in M&E on the performance of donor-funded projects in informal settlements in Kisumu Central Sub-County, Kenya. The study was guided by Stakeholder Engagement Theory. The study used a Convergent Parallel design with a sample size of 364 respondents computed using Yamanes' Sampling formula, drawn from 27 donor-funded projects in Obunga and Nyalenda informal Settlements. Purposive sampling was used for project managers, project M&E staff, and community members served, while community members were selected using stratified random sampling. The study findings revealed that there were regular opportunities for stakeholder interaction in the projects (x =4.05, SD 1.08), stakeholders contributed to the development of the organization/project (x= 3.79, SD=.940), although stakeholders' perspectives and opinions were not diligently incorporated into programming (x=2.06, SD=.879) as anticipated. The study, therefore, concluded that stakeholder involvement in M&E influenced the performance of donor-funded projects. The study recommended that the project managers in donor-funded projects need to enhance stakeholder involvement for project ownership and sustainability.