Outreach of Non-Profit Organizations in Nairobi County, Kenya: The paradoxical effects of Financial Inclusion Strategies

ABSTRACT Non-profit organizations in Nairobi County play a vital role in delivering essential services to marginalized communities. However, limited outreach continues to hinder their effectiveness in serving underserved populations. This study examined the effect of financial inclusion strategies on the outreach of NPOs in Nairobi County, Kenya. Specifically, the study assessed the effect of mobile money solutions, community-based financial services, financial literacy programmes, and partnerships with local institutions on outreach. Anchored on the diffusion of innovation theory, social capital theory, agency theory, and resource dependency theory, the study employed a descriptive survey design targeting 1,388 registered NPOs in Nairobi County. A sample of 311 finance officers or their equivalents was selected using Yamane’s formula. Primary data was collected through structured questionnaires, and analysis was conducted using multiple linear regression. The findings revealed that all four financial inclusion strategies significantly and positively influenced outreach: mobile money solutions (β = 0.382, p < 0.05), community-based financial services (β = 0.211, p < 0.05), financial literacy programmes (β = 0.228, p < 0.05), and partnerships with local institutions (β = 0.702, p < 0.05). The model had a strong explanatory power (R² = 0.931), indicating that these strategies collectively account for 93.1% of the variance in outreach. The study concludes that leveraging digital technology, community engagement, financial education, and strategic collaborations significantly enhances the reach and impact of NPOs. It recommends that NPOs intensify mobile money usage, strengthen grassroots financial services, scale up literacy programmes, and deepen partnerships to expand their outreach and social impact.