Non-Governmental Organization Led Sustainable Funding Programs and the Financial Growth of Small Businesses in Kisumu County, Kenya

Background: Small businesses play an important role in employment creation and local economic development, yet their financial growth is often constrained by limited access to appropriate and affordable financing. Non-governmental organisations have increasingly addressed this challenge through sustainable funding interventions such as savings programmes, revolving loan funds, grants, and financial literacy training. Aim: To examine the effect of NGO-led sustainable funding programmes on the financial growth of small businesses in Kisumu County, Kenya, focusing on savings programmes, revolving loan funds, grant programmes, and financial literacy training. Study Design: Correlational research design was undertaken. Place and Duration of Study: Kisumu County, Kenya. Primary data were collected in 2025. Methodology: The study targeted 2,500 registered small businesses supported through NGO partnerships. Using Yamane's formula, a sample of 96 owner-managers was selected through stratified random sampling across the manufacturing, trade, services and agriculture sectors. Structured questionnaires yielded 83 valid responses, representing an 86% response rate. Data were analysed using descriptive and inferential statistics, including means, standard deviations, Pearson correlation, and multiple linear regression following diagnostic tests. Results: The four funding programmes jointly explained 76.0% of the variation in the financial growth of small businesses (R² = 0.760, F(4,78) = 61.885, p < .001). Grant programmes had a positive and statistically significant effect on financial growth (β = 0.482, p < .001), as did financial literacy training (β = 0.435, p < .001). Savings programmes had a positive but statistically insignificant effect on financial growth (β = 0.085, p = .149), while revolving loan funds had a negative and statistically insignificant effect on financial growth (β = −0.091, p = .109). Conclusion: Grant programmes and financial literacy training were the strongest significant predictors of the financial growth of small businesses in Kisumu County. In contrast, savings programmes and revolving loan funds did not have statistically significant effects on financial growth. NGOs and policymakers should strengthen grant support and continuous financial literacy training while reviewing the design, accessibility, processing, and repayment conditions of savings and revolving loan programmes to better align them with the financing needs and cash-flow patterns of small businesses.