Stakeholder Engagement and Sustainability of Donor Funded Projects among Non-Governmental Organisations in Kenya: Case of Toll-Free Lines Project

Abstract

Sustainability of donor-funded projects remains a critical challenge for Non-Governmental Organizations (NGOs) in Kenya, particularly after the withdrawal of donor support. In this regard, the project team needs to employ strategies to ensure project sustainability and meet long term project goals. This study investigated the influence of stakeholder engagement on the sustainability of such projects, using FIDA Kenya’s toll-free call lines initiative as case study. The study focused on the following specific research objectives; to determine the influence of stakeholder identification on sustainability of donor funded projects; to evaluate the extent to which stakeholder involvement impacts sustainability of donor funded projects in NGOs and to examine the stakeholder communication methods used to achieve project sustainability. The study was anchored on stakeholder theory, supported by sustainability theory, participatory development theory and institutional theory. The research adopted explanatory and cross-sectional research design to capture a snapshot of the effect of stakeholder engagement strategies and their impact on project sustainability. From a study population of 3,135, the target population of 90 stakeholders directly and indirectly involved was selected. The study used census sampling technique, the target population of 90 formed the sample size. The study achieved a response rate of 74%, with 67 completed questionnaires. Quantitative data was collected using structured questionnaires and analysed with SPSS version 27, employing both descriptive and inferential statistical techniques. Descriptive statistics were used to summarize stakeholder perceptions, while inferential statistics including correlation and regression analyses were employed to determine the strength and nature of relationships between stakeholder engagement variables and project sustainability. The analysed data was presented using tables and graphs for clarity. The findings revealed that stakeholder identification (β = 0.923), stakeholder involvement (β = 0.587) and stakeholder communication (β = 0.981), significantly influence project sustainability, while legal and regulatory compliance (β = 0.161) plays a supportive role. The regression model demonstrated that these factors collectively explain 82.2% of the variation in project sustainability (R² = 0.822). The study concludes that structured and inclusive stakeholder engagement strategies is essential for long-term project viability. The study recommended that NGOs in Kenya should consider adopting evidence-based stakeholder engagement strategies by systematically identifying, involving, and communicating with stakeholders throughout the project phases. These insights are valuable for NGOs, donor agencies, and policymakers seeking to enhance the sustainability of donor-funded initiatives.