By the NGOs.ke Editorial Team. Updated 20 October 2026.
Locally led funding means money that local organisations receive directly and decide how to spend, instead of passing through an international intermediary. For Kenyan NGOs facing deep donor cuts in 2026, it has moved from a conference slogan to a survival question. Somalia, where local groups have run internationally funded programmes for more than 30 years, offers the clearest regional test case, and its results are mixed in ways Kenyan NGOs should understand before copying anything.
What is locally led funding?
The idea is simple. Local and national organisations hold the budget, set priorities and make the final calls, rather than acting as implementing subcontractors for a foreign agency. In practice it covers several models, from direct grants to local NGOs, to pooled funds with local governance, to domestic philanthropy raised inside the country.
The pressure behind it is real. The Standard reported this month that Kenyan civil society organisations are looking at locally driven funding models promoted by Nairobi-based Adeso as USAID cuts and shrinking Western donor budgets bite (the full article is behind a paywall, so we rely on its published summary). Our earlier look at Kenya’s NGOs after USAID covers the scale of that gap.
What can Kenya learn from Somalia?
In June 2026, Nimo Hassan, director of the Somalia NGO Consortium, laid out the Somali experience in an interview for the Global Public Policy Institute’s “Aid, Rebuilt” series. Three points stand out.
- Pooled funds help, but only so far. In 2025, 77% of the Somalia Humanitarian Fund went directly to local NGOs. Yet that fund made up less than 6% of overall humanitarian funding to Somalia, so most money still flowed through international structures.
- Leadership matters as much as money. She noted that no Somalia coordination cluster is led by a local or national NGO, even though local groups deliver much of the work.
- Local actors are not one group. She argues they should be judged individually on track record, systems and performance, instead of being labelled “too risky” as a category.
Her proposal is locally managed pooled funding, where international organisations may channel money but local NGOs lead design and prioritisation. She also points to the 2017 drought response in Galmudug and Southwest State, where community verification improved household targeting.
Key facts at a glance
| Item | Detail |
|---|---|
| Somalia Humanitarian Fund, 2025 | 77% of funding went directly to local NGOs |
| Fund’s share of all humanitarian funding to Somalia | Under 6% |
| Local NGOs managing international public funds in Somalia | More than 30 years |
| Adeso | Nairobi-headquartered African social enterprise; registered non-profit in Kenya and Somalia |
| Source of Somalia figures | GPPi interview with Nimo Hassan, 10 June 2026 |
Is there a Kenyan version already?
Parts of one exist. A July 2025 explainer from Africa Solutions Media Hub describes the regional shift: official development assistance to East African countries stalled or fell in real terms between 2018 and 2024, while local funders have stepped forward. The Kenya Community Development Foundation uses participatory grantmaking, where communities help choose grantees. The East Africa Philanthropy Network pushes pooled funds and joint learning, and CivSource Africa and TrustAfrica promote general operating support.
Older local traditions count too. Harambees and chamas are domestic giving systems that already move money without a foreign donor. They rarely fund salaries or audits, but they show local trust that institutional funders can build on.
What should a Kenyan NGO do now?
Moving toward locally led funding is a management project, not a mood. These steps are within reach of most registered organisations.
- Get your paperwork donor-ready. Funders who take a risk on local groups look first at registration, annual returns and financial controls.
- Document your track record. If funders should assess you individually, give them evidence: outcomes, community verification, audited accounts.
- Look for flexible money. Several funds take applications year-round; see our list of rolling grants with no deadline.
- Build a domestic giving channel. Mobile money lets supporters give in small amounts; our M-Pesa donations guide explains the setup.
- Join consortia. Hassan’s critique is that scale and coordination seats go to those at the table. Networks and joint bids give smaller groups a seat.
What are the risks?
Locally led does not mean lightly regulated. Direct funding raises the bar on safeguarding, data protection and reporting, and donors will still ask for them. A Segal Family Foundation representative, writing in Citizen Digital in August 2026, admitted that major institutional funders have not yet fully changed their risk frameworks or reporting requirements, although some are experimenting. Note too that she writes for a funder that promotes the model, so treat the piece as advocacy rather than neutral evidence.
FAQ
What does locally led funding mean for an NGO?
It means local organisations receive funds directly and have real decision-making power over priorities and budgets, rather than only delivering a foreign agency’s plan.
Who is Adeso?
Adeso describes itself as an African social enterprise headquartered in Nairobi, registered as a non-profit in Kenya and Somalia, with a stated vision of a world independent from aid.
Does a pooled fund count as locally led funding?
Partly. The Somalia Humanitarian Fund sent 77% of its money to local NGOs in 2025, but critics note it is still governed through international structures and represents a small share of total funding.
Can Kenyan NGOs replace foreign grants with local giving?
Not fully, for now. Domestic giving is growing and worth building, but most organisations will need a mix of local donors, flexible grants and partnerships.
Where can I read the Somalia interview?
The full interview is published on the Global Public Policy Institute website. Adeso’s own programmes are listed at adesoafrica.org.
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