International Journal of Current Aspects, ISSN 2616-6976, Volume 2, issue 5, 2018, pp 37-45 37 www.ijcab.org Effect of Financial Planning On Financial Sustainability of Public Governance Non-Governmental Organizations in Nairobi County, Kenya Veronica Chelangat 1 , Paul K Sang (PhD) 2 , Eddie Simiyu (PhD) 3 1 Correspondent Author, Master of Science Finance, Kenyatta University, Kenya 2 Department of Management Science, School of Business, Kenyatta University 3 Accounting and Finance Department, School of Business, Kenyatta University, Kenya ABSTRACT Financial sustainability requires that NGOs be able to meet all their resource and financing obligations and remain in existence for unforeseeable future. NGOs also play crucial role in the society. However, just a small number (10 percent) of NGOs that had managed to achieve a desirable level of institutional and financial sustainability. The study sought to establish the effect of financial planning on financial sustainability of public governance NGOs in Nairobi County. The study was guided by resource mobilization theory and fraud theory. Primary data was collected by use of questionnaires. The study adopted descriptive research design. The study target population was the 550 public governance NGOs in Nairobi County dealing with public governance. Systematic sampling technique was used to identify 10 percent of the population as the respondents where every 10 th organization was studied. The collected data was analyzed using both quantitative and qualitative data analysis methods. Quantitative method involved both descriptive and inferential analysis. Data from questionnaire was coded and analyzed using Statistical Package for Social Science (SPSS). SPSS was used for data entry, descriptive analysis, reliability analysis, correlation analysis and multiple regression analysis. The study established that the independent variables Financial Control (r=0.685, p<0.05) had positive and significant effect on NGO financial sustainability. The study concluded that high number of NGOs were not sustainable a problem which could be addressed through NGOs improving their financial planning practices. The study recommended that the management at the NGOs to work towards improving financial management practices with aim of enhancing financial sustainability of the NGOs. Key Words: Financial Planning, Financial Sustainability, Public Governance Non- Governmental Organizations, Nairobi County, Kenya 1. INTRODUCTION Nongovernmental organizations play key role in the delivery of healthcare, education and other welfare services in many developing countries like Kenya and hence their financial sustainability cannot be ignored. Additionally, NGOs play an important role in creating public awareness on important issues of concern including monitoring the activities of the government, multinational organizations, as well as other entities for the greater good of the community (Goddard & Assad 2006). To achieve the intended objectives, NGOs need to be transparent, accountable and be operated with the highest degree of integrity. This is based on the fact that financial accountability mechanisms employed by NGOs in delivering development objectives affect the effectiveness with which aid funding is deployed in individual aid projects (Agyemang, Awumbila, Unerman & Dwyer, 2009). Lack of financial accountability is a major feature among nongovernmental institutions globally (USAID, 2010). The challenge is more prevalent in Kenya as supported by empirical findings (Karanja & Karuti, 2014; Njoroge 2013 and Odhiambo, 2013). Non-governmental institutions that have sound financial accountability systems are able to have stable income