Resource mobilization strategies and organizational performance of development finance institutions in Kenya

Abstract

The study aimed to evaluate the influence of resource mobilization strategies on the organizational performance of development finance institutions (DFIs) in Kenya. These institutions are pivotal to the country’s economic development, making it essential to understand how different approaches to resource mobilization impact their performance. The general objective of this research was to assess the effects of various resource mobilization strategies on the performance of DFIs. Specifically, the study sought to: determine the influence of donations fundraising strategy, establish the influence of self-funding strategy, evaluate the influence of institutional partnerships strategy, and examine the influence of community collaboration strategy on organizational performance. The theoretical framework was grounded in four theories: Human Capital Theory, Resource Dependency Theory, Strategic Management Theory, and Social Capital Theory. A descriptive correlational research design was adopted, and a census approach targeting all six government-led DFIs was used. Primary data was collected from 59 targeted respondents through structured questionnaires, with 48 valid responses obtained, representing a response rate of 81.4%. Data was analyzed using descriptive statistics, correlation, and multiple regression analysis. The findings revealed that all four resource mobilization strategies had a positive and statistically significant effect on organizational performance. The regression model was statistically significant indicating that variation in organizational performance was explained by the four strategies. Community collaboration strategy had the strongest effect, followed by institutional partnerships strategy, donations fundraising strategy, and self-funding strategy. The study concludes that resource mobilization strategies are critical drivers of performance in government-led DFIs, with community collaboration and institutional partnerships yielding the highest impact. It further concludes that effective donor relationship management, diversification of internal revenue streams, strengthening of strategic alliances, and deepening of community engagement significantly enhance operational efficiency, customer satisfaction, and project completion rates. The study recommends that DFIs diversify fundraising approaches, expand internal revenue-generating ventures, negotiate for partnerships that provide both financial and technical value, and create structured platforms for community participation in project design, implementation, and monitoring. It further recommends embedding continuous performance evaluation in all resource mobilization activities to ensure sustainability, responsiveness to stakeholder needs, and alignment with strategic goals.