Kenya

Country Overview

Deeply rooted in communities, philanthropy plays an important role in Kenya. The growth in private wealth among high net worth individuals, technology, and the changing culture all affected the ways that individuals practice philanthropy. In addition to donating to civil society organizations (CSOs), Kenyans also engage in philanthropy through diverse mechanisms and traditions, such as communal asset-building mechanisms like Harambee, provision of farming equipment or other assets, burial associations, and pooled support for those who are in need. Systems of mutuality and reciprocity like these are embedded in Kenyan societies. Additionally, faith-based giving, institutional or informal, is prevalent and long-standing in Kenya.

This study seeks to explore two emerging ways of giving in Kenya: crowdfunding and workplace giving. The concept of crowdfunding has a long history in Kenya and can be linked to the Harambee spirit. Harambee means pulling together for the provision of goods through voluntary cooperation among community members (Wilson, 1992). The technological advancements enable the practice of Harambee through digital platforms, which were embraced by more CSOs during the COVID-19 pandemic in order to diversify revenue sources. Workplace giving is another emerging vehicle of philanthropy that is studied in the report. The popular form of workplace giving in Kenya is through community projects proposed and funded by employees. The report shares insights learned from interviews with staff at 20 organizations that had a philanthropic presence in Kenya in early 2022.

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East Africa Philanthropy Network

Crowdfunding and workplace giving increase fundraising accessibility for Kenyan organizations.

Among the 20 interviewed organizations, 11 organizations indicated that they had been using crowdfunding to raise resources, while 7 organizations participated in workplace giving. Another 2 organizations have used both vehicles. Organizations shared that these methods are easier and faster compared to some traditional models, such as applying for grants from foundations. Both vehicles presented friendlier approaches for organizations that are not able to meet stringent donor requirements to qualify for certain amounts of funding, e.g., requirements to have existed for more than three years, to have audited accounts, and to have a certain number of full-time staff.

Crowdfunding opens new avenues to support the sustainability of an organization’s operations, while workplace giving instills a culture of giving and a sense of community among employees.

Crowdfunding can be adopted as a way of expanding funding to ensure the sustainability of an organization, especially with the donor space shrinking and the grant ecosystem shifting in the last five years. It enables interaction with new individual donors from all over the world, and the creation of networks and relationships with donors and other like-minded organizations for future collaboration.

Interviewed organizations observed that workplace giving introduces a culture of philanthropy among employees and extends the idea that structured giving can help strangers. It creates a bond within the staff, thus generating a greater sense of being connected to their work. Staff giving also demonstrates their trust in the organizations’ capacity to appropriately utilize the funds raised by the employees.

Crowdfunding would immensely benefit from increased accountability, campaign creativity, and flexible regulations.

Some of the challenges that interviewed organizations encountered with crowdfunding include over-promised and unmet pledged donations, issues of accounting for allocated resources, donor fatigue, heavy dependence of crowdfunding on technology, and restrictions or even taxes placed by national and local governments on online operations. Increased accountability, campaign creativity, and more supportive regulations were proposed by interviewed organizations as potential ways to encourage the growth of crowdfunding in Kenya.

The key to a successful employee giving program is balancing expectations and trust around donations.

Accountability of funds raised and their utilization are critical in building trust and continued giving. For workplace giving, there is a delicate balance to ensure that staff do not feel obligated or threatened if they do not give. A supportive regulatory environment and sound policies would also boost workplace giving.