FINANCIAL REPORTING AND SUSTAINABILITY OF CATHOLIC CHURCH-OWNED HOSPITALS IN THE ARCHDIOCESE OF NAIROBI

Abstract

The pursuit of financial sustainability remains a critical concern across sectors as organisations respond to economic volatility and the global demand for sustainable development. In the healthcare sector, financial sustainability is essential to ensure service continuity, improve health outcomes, and support national development goals. This study assessed the influence of financial reporting on the financial sustainability of Catholic Church owned hospitals in the Archdiocese of Nairobi. Anchored in principal-agent theory, the study employed a descriptive cross-sectional survey design and adopted a quantitative methodology. The target population comprised 19 Catholic Church-owned hospitals, all of which were included in the census. Primary data were collected using structured questionnaires, while secondary data were obtained via a data collection sheet. Descriptive statistics and binary logistic regression were utilised to analyse the data. The results revealed a positive but statistically insignificant relationship between financial reporting and financial sustainability (β = 2.098, odds ratio = 8.14991, p = .235). These findings suggest that, while financial reporting may contribute to sustainability, its effect is not statistically significant in this context. The study concluded that financial reporting alone does not significantly influence the financial sustainability of Catholic Church-owned hospitals in the Archdiocese of Nairobi. It recommends further strengthening of financial reporting, internal controls, and financial literacy, alongside independent audits, as part of an integrated strategy to improve/enhance the sustainability of Catholic Church-owned hospitals