Effect of Donor Grant Funding on Financial Sustainability of Community Conservancies under the Northern Rangelands Trust in Kenya
DOI:
https://doi.org/10.70619/vol6iss6pp30-43-874Keywords:
Donor grant funding, financial sustainability, community conservancies, conservation finance, Northern Rangelands Trust, Kenya.Abstract
Community conservancies play a vital role in biodiversity conservation, ecosystem protection, and improving community livelihoods in Kenya's arid and semi-arid lands. Despite their contribution, many conservancies continue to experience financial sustainability challenges arising from unstable revenue streams, rising operational costs, and dependence on external financing. Donor grant funding remains a major source of financial support for conservation programmes, wildlife protection, and community development; however, uncertainties in donor priorities and funding continuity threaten long-term sustainability. This study examined the effect of donor grant funding on the financial sustainability of community conservancies operating under the Northern Rangelands Trust in Kenya. The study was anchored on Resource Dependence Theory and adopted a positivist research philosophy, quantitative research approach, and descriptive correlational research design. A census of 180 respondents drawn from 45 community conservancies was conducted. Primary data were collected using structured questionnaires and analyzed using descriptive statistics, Pearson Product Moment Correlation, and simple linear regression in SPSS Version 25. The study achieved a response rate of 86.7%. The findings established a positive and statistically significant relationship between donor grant funding and financial sustainability (r = 0.681, p < 0.05). Regression analysis further revealed that donor grant funding significantly predicted financial sustainability (β = 0.624, Beta = 0.681, t = 12.140, p < 0.001), explaining 46.4% of the variation in financial sustainability (R² = 0.464). The study concluded that stable and predictable donor grant funding strengthens liquidity, operating-cost coverage, reserve adequacy, and reinvestment capacity among community conservancies. It recommends strengthening long-term donor partnerships, diversifying donor portfolios, improving grant management systems, and enhancing financial accountability to promote sustainable conservation financing.
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