Charitable groups contributed Sh172b to Kenya’s economy

Private and corporate philanthropies contributed a total of Sh172 billion to Kenya’s economy, a new survey for the 2022-2023 financial year shows.

The contributions were significant for Kenya’s development agenda, said Patricia Mugambi-Ndegwa, CEO of Impact Philanthropy Africa.

“We believe this is just the tip of the iceberg and that the giving exceeds this amount,” she said when she issued the report, “The State of Philanthropy in Kenya” the first of its kind in Kenya.
However, much of this money was concentrated in the big cities of Kisumu, Nakuru, Kiambu, Nairobi and Mombasa – the top five counties where philanthropic organisations with active programmes were concentrated.

Impact Philanthropy Africa gave industrialist Dr Manu Chandaria the inaugural Lifetime Achievement Award in Philanthropy on October 31 during a special CEOs forum.

It categorises the average philanthropy investment allocation by type of organisation, with private foundations contributing Sh3.9 billion, followed by corporate foundations at Sh690 million, and corporations a distant third with Sh38 million.

Based on primary data collected over 2022-2023 and secondary research, this report provides a comprehensive overview of philanthropy in Kenya, pointing out that related programmes are carried out through three main ways: internal delivery units (50.7 per cent), grants (26.8 per cent) and partnerships (5.6 per cent).

The report shows that philanthropic assets made up 1.42 per cent of Kenya’s gross domestic product (GDP) and accounted for four percent of the total foreign aid to Kenya coming from the Organisation for Economic Cooperation and Development (OECD) in 2021.

“The top five sectors with the highest number of philanthropy activities include education and training at 79 per cent, followed by health at 60 percent, environment (46 per cent), water and sanitation (33 per cent) and gender, youth, sports and culture (27 per cent),” the report says.

Government priorities
It outlines how organisations align their philanthropy with government goals. An estimated 68 percent of philanthropy support is aligned with government priorities, while advocacy for government goals takes up 40 percent, some 26 percent goes to filling budgetary gaps, and other activities gobbled up 15 percent.

The report also includes insightful thought leadership articles on philanthropy from various leaders, including Chandaria (“Chandaria Foundation – Building a Legacy of Giving”).
Peter Ndegwa, Safaricom CEO, explained how the private sector in Kenya can lead philanthropic efforts in the fight against climate change.

Faustina Fynn-Nyame, the executive director for Africa at the Children’s Investment Fund Foundation, highlighted how philanthropy catalyses change in a presentation called “The Potential of African Philanthropy”.

Private foundations
Journalist Julie Gichuru, the chief public affairs and communications officer at the Mastercard Foundation, gave a presentation on how homegrown solutions are key to Africa’s sustainable progress.

“This research is game changing as it captures current and pertinent data on philanthropic trends in Kenya and helps address the huge gap and lack of data on the role of philanthropy in the development of Kenya,” said Mugambi-Ndegwa.

Wanjiru Nduati, Kenya’s leading legal adviser on trusts and foundations, reflected that philanthropic institutions in Kenya represent a new dawn in development
Samantha Bastian, the chief operating officer at the Busara Centre for Behavioral Economics, delved into how lean monitoring and evaluation can be an effective vehicle for philanthropy in Kenya.

The report also provides a cross-section of case studies to promote learning and best practices: corporate philanthropy driving effective giving and sustainable business practices: A Case Study of Kenya Tea Development Agency (KTDA) Foundation.

Another case study is Navigating Philanthropy, a pathway for medium-sized companies: A Case Study of Toyota Foundation’s journey.

Another case study is that of the KCB Foundation’s Corporate Investment Advancing National Goals, Synergy for Change.

The report was the result of a collaboration between Impact Philanthropy Africa, the M-Pesa Foundation, the Safaricom Foundation, the Mastercard Foundation, and the Children’s Investment Fund Foundation.

Others involved include were the Busara Center for Behavioral Economics, a research technical partner, the Nairobi Securities Exchange and the Kenya Private Sector Alliance.