Feasibility study for CBO transformation
Project Details
Duration
2007
Target
Community based organizations in Kangemi, Kibera and Kiambiu
Partners
French Embassy
Project purpose
To analyze the status of four CBOs and generate suitable proposals on how best they can be transformed into viable sustainable and profitable community entities that are also recognized within the water Act 2002.
Project description
Since 1998, MnU has had interventions in 10 slum villages in Nairobi working with about 11 CBOs. Currently four of the CBOs namely, Kiambiu Usafi group, Kaptagat Usafi group, Ushirika wa Usafi Laini Saba and Soweto Usafi group have grown substantially. However, fatigue from volunteerism by members, lack of commensurate returns for individual members and founder member syndrome have been an impediment to further development of these CBOs.
To address this negative trend, Maji Na Ufanisi’s aim is to help transform the four (4) CBO’s into viable entities, which will translate into sustainable ownership and management that delivers benefits to current individual group members while allowing recruitment of new members as a strategy for continuity. This would allow better financial management, better returns and investments; (through share holding and dividends), and expansion and replication in other areas. The new entities should also be recognized by the water Act 2002, as small Scale Independent Service Providers (SSISPs). The study results will also inform the exit or disengagement strategy of Maji Na Ufanisi and other peer organizations from such organizations with a view to avoiding donor dependency syndrome.
Outputs
- An institutional analysis report of each of the four CBOs
- An evaluation of the assets/investments both physical and non-physical, including their ownership and residual life span
- An analysis of the relevant laws, statutes and regulations that have an impact on the proposed entities
- A detailed analysis of institutional setting, financial status and viability, management capacities and the current business environment of the CBOs
- A proposal of the various workable models for the anticipated entities (including community asset ownership and management) relevant for each CBO which shall be recognized and formalized within the Water Act 2002
- An analysis of the capacity development needs for institutional strengthening necessary for implementation of the best models
Lessons learnt
- There is need for awareness creation amongst all CBOs in the water sector on the Water Act 2002
- Transformation of CBO’s into cooperatives or companies necessitates Business Development Services i.e. training in the development of business plans, financial management, cash flow management, financial reporting and financial control systems among others
- Transition from a CBO to a cooperative society (actual transformation) requires organizational development of the CBO: establishment of administrative policies, personnel policies, financial policies, leadership and governance policies plus a review of by-laws
- There is need to increase coverage of Water and Environmental Sanitation
- Sowing an entrepreneurial spirit in all activities is the mustard seed for sustainability of WES projects partnerships.