Infographic source: A screen grab the State of Philanthropy in Kenya Report 2023.
The latest report on the status of philanthropy in Kenya reveals that corporate and private philanthropy is injecting over KSh 172 billion (approximately USD 1.56 billion) annually into the nation’s development agenda.
This significant figure, highlighted in the “State of Philanthropy in Kenya Report 2023,” underscores the vital role of local giving in driving progress across key sectors.
The comprehensive study, a collaborative effort by Impact Philanthropy Africa, the Nairobi Securities Exchange (NSE), and the Kenya Private Sector Alliance (KEPSA), with research sponsorship from leading foundations including M-Pesa Foundation and Mastercard Foundation, offers an unprecedented deep dive into the country’s giving landscape.
Its core aim: to bridge critical data gaps and foster more impactful philanthropic endeavors across Kenya and the wider African continent.
Unmasking the Scale of Giving
For years, a lack of consistent, up-to-date data has hindered the strategic growth of local philanthropy. This report directly tackles that challenge.
It provides the first authoritative estimate of philanthropic investments, drawing on primary data collected between 2022 and 2023, supplemented by extensive secondary research.
The KSh 172 billion annual investment positions Kenya’s philanthropic assets at 1.42% of its Gross Domestic Product (GDP).
This percentage notably surpasses that of other African economic powerhouses like Nigeria (0.3%) and South Africa (0.3%).
While Nigeria’s total estimated annual giving stands higher at $17 billion, Kenya’s $1.5 billion significantly outpaces South Africa’s $709 million (2021).
It is crucial to note that direct comparisons are affected by varying methodologies across these studies.
Who is Driving This Generosity?
The survey, which captured insights from 121 diverse organizations, painted a clear picture of engagement.
Corporations constitute 44% of philanthropic entities, followed by corporate foundations at 33%, and private charitable foundations at 22%.
A substantial 68% of these organizations actively engage in philanthropic activities.
However, 32% do not, revealing a significant untapped potential, particularly among medium and large-scale companies listed on the NSE.
The banking and finance sector leads the charge in philanthropic participation, closely followed by manufacturing.
Other key sectors contributing include agriculture, health, energy, real estate, and telecommunications, showcasing a broad-based commitment to social development.
Beyond Cash: Diverse Forms of Support
Philanthropy in Kenya extends beyond monetary donations. Roughly 70% of organizations embrace a blended approach, combining cash contributions with in-kind donations.
Moreover, employee volunteer programs are a cornerstone of non-cash giving, with an impressive 82% of organizations leveraging their workforce for community impact.
Strategic Investments: Sectors and Regions of Focus
Philanthropic capital is strategically deployed across vital development sectors.
Education, health, environment, water and sanitation, and agriculture emerge as the top recipients of investment.
This focus mirrors trends observed in other African nations like Nigeria and South Africa.
- Education: Funds are channeled into improving educational outcomes, particularly in rural areas. This includes developing infrastructure for primary schools and Technical and Vocational Education and Training (TVET) facilities. The goal is to boost school enrollment and foster quality education through teacher training and inclusive scholarships. Bursaries and loans remain critical, especially amidst declining support from institutions like HELB.
- Health: The drive for universal health coverage is supported, addressing challenges such as insufficient government funding. Philanthropic efforts aim to increase the number of healthcare professionals, particularly nurses, in rural areas, bridging the gap from Kenya’s 8.3 nurses per 10,000 population (2022) to the WHO’s recommended 25.
- Environment, Water, and Sanitation: These crucial sectors receive moderate but growing alignment with philanthropic activities.
- Agriculture is identified as a heavily funded sector, reflecting its importance to Kenya’s economy.
- Gender, Youth, Sport, and Culture: While vital, these areas currently show weaker alignment with philanthropic funding, indicating a gap for future investment.
- Population, Urbanization, and Housing: These sectors also exhibit weak alignment, pointing to further opportunities for philanthropic engagement.
Geographically, philanthropic efforts demonstrate a commitment to addressing disparities.
Nearly half of the top 10 counties with active philanthropic programs are situated in Kenya’s arid and semi-arid lands. Samburu, Vihiga, and Baringo counties lead in terms of program presence.
Urban centers with significant philanthropic organizational bases include Nairobi, Nakuru, Kiambu, Kisumu, and Mombasa.
Operational Efficiency and Governance
The report sheds light on operational models. Half of the programs (50.7%) are managed through internal delivery units.
A significant portion (26.8%) involves grants to other organizations, while 5.6% rely on partnerships with implementers. This highlights a potential for increased collaborative ventures.
Staffing in philanthropic organizations varies. Most (52%) operate with lean teams of 1-5 full-time employees dedicated to philanthropic work.
However, 16% boast larger teams of over 20 staff, reflecting varying scales of operation and investment capacity.
Organizations with over 20 employees allocated a mean of KSh 12 billion to philanthropy, significantly more than the KSh 260 million from those with 1-5 employees.
Monitoring for Maximum Impact
Monitoring and Evaluation (M&E) practices are critical for accountability and effectiveness.
Private charitable foundations lead in conducting in-house M&E (87%), compared to corporate foundations (54%).
Worryingly, about 19% of organizations do not conduct any M&E for their philanthropic activities.
While traditional methods like site visits, activity documentation, and financial audits are common, there’s a recognized need to enhance the quantification of outcomes and beneficiary tracking.
The report stresses the importance of improving impact tracking across all entities and allocating sufficient resources to M&E, ensuring comprehensive data collection and analysis.
Aligning with National Ambitions
A commendable 87% of philanthropic organizations actively align their long-term strategies with national development goals, particularly in education and health.
This alignment fosters synergy between private giving and public policy, although opportunities remain to strengthen focus on under-aligned sectors like gender, youth, and housing.
Navigating Challenges and Seizing Opportunities
The report emphasizes that philanthropy alone cannot solve all of Africa’s challenges.
It calls for increased private capital participation, with philanthropy playing a crucial role in de-risking investments and catalyzing private funds into social impact.
A key observation is the prevalence of informal giving, often due to sensitivities around wealth and taxation.
This leads to significant underreporting of philanthropic activities.
Unlike Nigeria, where high-net-worth individuals often separate business and personal giving, Kenya’s business leaders frequently integrate philanthropy into their corporate activities, which can complicate comprehensive tracking.
The growing emphasis on trust-based relationships within African philanthropy is also noted.
This shift is crucial for fostering equitable partnerships and empowering more African voices in the design and allocation of solutions.
The report points out that African donors contributed only 9% of large gifts (by value) over the past decade, compared to 14% from non-African donors.
Furthermore, African philanthropy is predominantly income-driven, contrasting with wealth-driven giving in more established markets.
Charting the Future: Key Recommendations
To unlock philanthropy’s full potential in Kenya, the report offers strategic recommendations:
Deepen Alignment with National Priorities: Expand investments beyond traditional sectors like education and health to include critical areas such as sustainable agriculture, renewable energy, and inclusive infrastructure. Prioritize projects that champion gender equality, social inclusion, and environmental sustainability.
Strengthen Governance and Management: Implement robust governance structures with clear roles, long-term strategic plans, and data-driven decision-making processes. This ensures efficient resource allocation and transparent program execution.
Enhance Reporting and Mainstream M&E: Move beyond basic M&E to comprehensive tracking that quantifies impact across strategic, operational, and project levels. Sufficient resources must be allocated to ensure meaningful evaluation.
Boost Overall Giving: Actively engage and encourage greater philanthropic participation from publicly listed companies, especially those currently not involved.
Foster Collaboration: Promote joint planning and partnerships among philanthropic entities to achieve greater scale and impact in their initiatives.
The “State of Philanthropy in Kenya Report 2023” stands as a foundational document, poised to inform, engage, and influence philanthropic behavior.
Its insights will drive thought leadership, advocate for supportive policy environments, and facilitate the sharing of best practices and innovations, ultimately accelerating Kenya’s journey towards sustainable development.
Editor’s Note:
This news story is based entirely on the “State of Philanthropy in Kenya Report 2023,” produced by Impact Philanthropy Africa in collaboration with the Nairobi Securities Exchange (NSE) and the Kenya Private Sector Alliance (KEPSA).
The report, which also involved research sponsorship from M-Pesa Foundation, Safaricom Foundation, Mastercard Foundation, and the Children’s Investment Fund Foundation (CIFF), alongside research partner Busara Center for Behavioral Economics, offers a comprehensive overview of the philanthropic landscape in Kenya as of 2021.
This is the latest such report in the country. Africa Solutions Media Hub will be on the lookout for any other updated reports on the subject matter.
