FINANCIAL PLANNING AND THE FINANCIAL SUSTAINABILITY OF CATHOLIC CHURCH OWNED INSTITUTIONS IN KENYA

Abstract

The financial sustainability of any institution requires proper management practices for achieving stability and growth. The long-term existence of Catholic Church Owned Institutions (CCOIs) faces obstacles because of insufficient financial planning practices. The research examined financial planning practices which influence the enduring existence of Kenyan church-owned institutions. The study incorporated concepts from sustainability model and Religious Economy Theory. The research adopted a descriptive design structure within the context of positivist philosophy. The research population consisted of the 8,465 CCOIs who work in Kenyan health and educational institutions. A sample of 249 CCOIs works as the analytical unit based on Cochran's determination method for calculating sample size. The observation unit was composed of directors/CEOs and finance managers who work at CCOIs. Research data was obtained through closed-ended questionnaires administered for the study. The study analyzed data through descriptive statistics and inferential statistics together with SEM. Financial planning showed an excellent positive correlation to sustainability based on its regression coefficient value of 0.256 (p < 0.05) while demonstrating an association of r = 0.740 (p < 0.05).  Based on these results, the study recommends that Catholic Church Owned Institutions develop comprehensive, systematic and standardized financial planning protocols to enhance their long-term financial sustainability.