Thesis:

Influence of financial management practices on sustainability of registered non-governmental organisations in Kwale county, Kenya

Non-governmental organizations' (NGOs') explosive growth in worldwide development during the last three decades is widely known. The emergence of NGOs has been driven by the frequently implicit belief that private actors, including private non-governmental organizations, are successful in reducing global poverty through market-based and participatory approaches, extending democracy through a strong civil society, and providing services when national governments lack the necessary funding or political will. This study looked at how registered NGOs in Kwale County, Kenya, fared in terms of sustainability when it came to financial management procedures. The study was directed by the following goals: to determine how financial management system budgetary practices affected the sustainability of registered NGOs in Kwale County, Kenya; to determine how financial management system working capital management practices affected the sustainability of registered NGOs in Kwale County; to determine how financial management internal audit affected the sustainability of registered NGOs in Kwale County; and to determine how financial management system internal controls affected the sustainability of registered NGOs in Kwale County, Kenya. The study’s geographical focus was Kwale County. the study, took place in Kwale County between 20th July 2024 to 25th October 2024, examined financial management techniques and how they impact generally non governmental organizations' long-term viability. The Resource Dependence Theory (RDT) theory and Agency theory was used. This study used a quantitative approach as the method of collecting data. Gathering and evaluating numerical data is the process of quantitative research. The study's target population was all the 2200 officials in Kwale. the researcher used simple random sampling technique where a 10% sample was also used to select the volunteers resulting to sample size 220 to be randomly picked as respondents. A panel of experts assessed the study's content validity by determining the material's relevance and providing comments on how well the measuring device satisfies the requirements. The Cronbach's Alpha coefficient was used to assess the surveys' reliability. Ranges between -1 and 1 was used for this reliability coefficient, which allows for a bias-free assessment of data generalization. Both Likert-type and structured closed items were included in the questionnaires. The drop-and-pick technique of administering the questionnaires provided appropriate follow-up and clarifications if the respondents request them. The researcher assigned codes for the aim of maintaining anonymity. The study showed that there was a moderate positive and statistically significant correlation between Financial Management system working capital management practices and sustainability of registered non governmental organisations in Kwale county, Kenya. (r =- 00.589; p < 00.05). This demonstrated how working capital management techniques in the Financial Management system improved the sustainability of registered non-governmental organizations in Kwale County, Kenya. According to the study, the sustainability of registered non-governmental organizations in Kwale County, Kenya, was positively correlated with internal auditing of financial management systems in a moderately significant way. It is p < 0.05 (r = 0.690). This suggests that the internal audit of Financial Management systems improved the long-term viability of registered non-governmental organizations in Kenya's Kwale County.