The Non-Profit Sector in Kenya - Aga Khan Development Network

The Non-Profit Sector in Kenya - Aga Khan Development Network The Non-Profit Sector in Kenya - Aga Khan Development Network

12.07.2015 Views

that this is the period when a new government came to power, it ispossible that the growth was the result of a new political environment.Explaining growthSeveral factors account for the growth of NPOs in Kenya. First is thecountry’s rich tradition of philanthropy and volunteerism, with rootsin the communal relationships of an African society. Harambee (poolingtogether of resources to provide basic services) is an expression ofthis tradition and the spirit of volunteerism. This tradition has valuesthat are the foundation of non-profit initiatives in the country today.Secondly, until very recently, the capacity of the state to provide basicservices has been on the decline owing to sluggish economic growth.When growth was high in the 1960s and 1970s, Kenya had a developmentalstate that was at the centre of service provision. Poor growth inthe 1980s and donor conditionalities occasioned the introduction ofStructural Adjustment Programmes. These subsequently reduced thegovernment’s ability to provide services. NPOs filled the gaps in serviceprovision throughout the 1990s.Thirdly, though not in relation to all the different kinds of non-profits,poor economic management and governance resulted in donorsshifting their attention and increasing funding to NGOs from the early1990s. Increased disbursements through NGOs led to the mushroomingof NGOs, who in turn used local community organisations as theirentry point for development work at the grassroots. This resulted inproliferation of organisations in the development space.Finally, the coming to power of a new government in 2003 evolved anew political environment for registration of organisations. The highnumbers of Foundations, Trusts and Self-help Groups were registeredespecially during the 2003-2004 period.Chapter 2 Growth of The Non-Profit Sector in Kenya 7

Size and Scope Of Non-Profit SectorThe non-profit sector is a significant economic force in Kenya. In2000, the sector accounted for about US$270 million in expenditure.This was equivalent to 2.5 percent of the Gross Domestic product(GDP), whose significance is illustrated in Table 4.Table 4: Significance of the non-profit SectorUS$ 269.7 million in expenditure in 2006 2.5% of the Kenya Gross Domestic Product (GDP)Representing:The equivalent of 177,075 full time paid employeesThe equivalent of 113,873 full time volunteers2.1% of the economically-active population16.3% of those not employed in agriculture42.6% of those employed by the public sectorSource: Organisational surveyIn carrying out their activities, NPOs engage labour on a full time, parttime and volunteer basis. In 2000, the sector had a workforce (bothpaid and volunteer) equivalent to over 290,000 full time workers. Thiswas equivalent to 2.1 percent of Kenya’s economically-active population,and 16.3 percent of its non-agricultural employment.8The Non-Profit Sector In Kenya

Size and Scope Of <strong>Non</strong>-<strong>Profit</strong> <strong>Sector</strong><strong>The</strong> non-profit sector is a significant economic force <strong>in</strong> <strong>Kenya</strong>. In2000, the sector accounted for about US$270 million <strong>in</strong> expenditure.This was equivalent to 2.5 percent of the Gross Domestic product(GDP), whose significance is illustrated <strong>in</strong> Table 4.Table 4: Significance of the non-profit <strong>Sector</strong>US$ 269.7 million <strong>in</strong> expenditure <strong>in</strong> 2006 2.5% of the <strong>Kenya</strong> Gross Domestic Product (GDP)Represent<strong>in</strong>g:<strong>The</strong> equivalent of 177,075 full time paid employees<strong>The</strong> equivalent of 113,873 full time volunteers2.1% of the economically-active population16.3% of those not employed <strong>in</strong> agriculture42.6% of those employed by the public sectorSource: Organisational surveyIn carry<strong>in</strong>g out their activities, NPOs engage labour on a full time, parttime and volunteer basis. In 2000, the sector had a workforce (bothpaid and volunteer) equivalent to over 290,000 full time workers. Thiswas equivalent to 2.1 percent of <strong>Kenya</strong>’s economically-active population,and 16.3 percent of its non-agricultural employment.8<strong>The</strong> <strong>Non</strong>-<strong>Profit</strong> <strong>Sector</strong> In <strong>Kenya</strong>

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