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The Effect of Global Economic Crisis on Service Delivery in Selected Non-Governmental Organizations in Kenya

Author(s): Ogutu Christine | Mang’unyi Eric Ernest

Journal: Journal of Management and Strategy
ISSN 1923-3965

Volume: 2;
Issue: 4;
Date: 2011;
Original page

This study explored the effects of global economic crisis on service delivery in selected non-governmental organisations (NGOs) in Kenya. It was of the view of the researchers that NGOs must have experienced the effects that were brought about by the Global Economic Crisis (GEC) and must have had alternative methods that were used effectively. A number of challenges were faced such as reduction in project implementation, operation scale-down, budget reduction, decreased funding, employment freeze and staff turnover. Service delivery on program activities were affected in various ways such as reduction in staff which in turn scaled down on operations. Main management strategy employed was restructuring. The study recommends that NGOs need to focus on diversifying sources of funding. NGOs should find creative and innovative ways of not only surviving such times but also even possibly seizing them as an opportunity and make a significant difference. Raising awareness among stakeholders, developing agreements among management and staff on clear criteria and measures to manage reserves, unrestricted funds and investment decisions can be utilized.
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