Kenya’s non-governmental sector is grappling with a 25 percent drop in funding, one of its toughest financial moments in recent years.

The shortfall, linked to the US President Donald Trump-era USAID cuts and global strains from the war in Ukraine, has forced many organisations to scale back or suspend programs.

Speaking at the launch of the 2025 NGO Awards in Nairobi yesterday, CIHEB CEO Dr Emily Koech called for urgent diversification of funding.

“Donor aid has reduced by 25 per cent. We need to diversify and embrace impact investing. Without it, many grassroots programs that transform lives will stall,” Dr Koech said.

According to a 2024 NGOs Board report, Kenya’s civil society previously received Sh196 billion annually from international donors.

But unless the sector taps local resources, leaders warn, its future remains uncertain.

“Kenya cannot afford to over depend on foreign aid anymore. If people can faithfully give to their churches, they can be inspired to give to causes that uplift communities provided NGOs lead with transparency and accountability,” said Aga Khan Foundation CEO Susan Otieno.

The World Giving Report highlights this potential, revealing that 86 per cent of Kenyans donate to causes, far above the global average of 64 percent.

Kenya also ranks fifth worldwide in generosity, with citizens giving 2.13 percent of their income.

“Donors trust, but they verify. A credible board and transparent systems are what give funders confidence. The future of NGOs depends on it,” added Wangui Mukanu of the KCB Foundation.

The 2025 NGO Awards, themed “Fundraising for Impact,” aim to celebrate resilience and innovation while encouraging new funding models.

Now in its second year, the awards have expanded to 20 categories, with new honors for Peacebuilding, Disability and Inclusion, and Foundation of the Year.

Nominations are open at ngosawards.com until September 19, with winners to be announced at a gala on November 14.