INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 5, ISSUE 05, MAY 2016 ISSN 2277-8616 28 IJSTR©2016 www.ijstr.org The Role Of Determining Strategic Direction On Not-For-Profit Organizational Performance In Nairobi County In Kenya Daniel Mwendwa Kitonga, Walter Okibo Bichanga, Benjamin Kyalo Muema Abstract: This paper sought to examine the link between strategic leaders‘ practice of determining strategic direction and organizational performance. An embedded mixed method research assessing the impact of strategic leadership variable – determining strategic direction and organizational performance was completed by managers representing 328 not-for-profit organizations in Nairobi County in Kenya. The study established a significant positive relationship between determining strategic direction and organizational performance. The results found r value of 0.676 and r 2 value of 0.457 that is 45.7% of corresponding change in the organizational performance of not-for-profits for every change is explained by the predictor variables. The findings demonstrate that if not-for-profit leaders clearly determine the organizations‘ strategic direction, they are likely to improve their organizational performance significantly. This paper examined how determining strategic direction (strategic planning) in not-for-profit organizations in Nairobi County in Kenya. Future research that seeks to replicate these findings is recommended. This paper proposes the study of determining strategic direction (strategic planning) as way of improving strategic leadership practices hence enhancing not-for-profit organizational performance. Key words: Strategic leadership, determining strategic direction, organizational performance, not-for-profit organizations. ———————————————————— 1. INTRODUCTION Determining the strategic direction of any organization is an important role which cannot be left without proper leadership. Not-for-profit organizations like their counterparts, the for-profit organizations require proper determination of the direction in which the organization is pursuing. Many failures in organizations have been attributed to the failure of the leadership to plan. A number of not-for-profit organizations have also suffered this fate despite the need of their services by the marginalized. 2. Study background Globally, not-for-profits have been noted as among the fastest growing types of organizations with some holding huge budgets even bigger than those of the host countries (Hall, 2005; Worth, 2009). The study of not-for-profit organizations is observed to be gaining ground globally. This interest reflects a growing realization among not-for- profit managers as well as leaders, administrators, policy makers and researchers that leading not-for-profit organizations in 21 st century requires a different kind of leadership. Nonprofit organizations are self-governing private organizations that do not make a profit for owners or members, but they do offer certain benefits to the public for which they may or may not charge a fee for (Nahavandi, 2012; Worth, 2009). According to Ahmed (2013) not-for- profits have brought several issues despite its increased growth that require immediate action. Aksel and Baran (2006) observed that NGOs face challenges in strategic planning, budgeting, staffing, governing structure, growth and change management, etc. It is evident that these challenges cannot be addressed by people who do not know what the problem is and how to deal with it hence the need for strategic leadership. This view is supported by Amagoh and Kabdiyeva (2012) who noted the global growth of the NGOs sector and concluded that this sector required strategic leadership. Banks and Hulme (2012) found a mixture of sociopolitical environments in NGOs. For instance, in Philippines, the inability of political parties to secure representation and participation was noted to have created a vacuum for which NGOs had to step in (Clark 1998). Banks and Hulme (2012) observed that Africa has experienced NGO boom beginning in the 1990s. In Tanzania it was found that there were 41 registered NGOs in 1990 and this number increased to more than 10,000 by 2000 (Hearn 2007). In Uganda the NGO sector was viewed with mixed feelings, including rampant suspicion that the public good was not the primary motivation (Barr et al 2005). Kenya experienced a rapid increase in registered NGOs, from 400 in 1990 to over 6,000 in 2008 (Brass, 2012). Further in Kenya not-for-profits were about 350,000 ‗registered‘ NPOs in Kenya in 2005 (Kanyinga & Mitullah, 2007). The NGO Council observed a significant growth in the number of NPOs from 5,600 in 2008 to over 8,000 in 2012. Okorley and Nkrumah (2012) observed that despite the role of NGOs in development in developing countries, the issues of sustainability, availability of funds, and supportive leadership have remained a major challenge. Despite this growth these organizations continue to face diverse challenges in resource mobilization, technical capacity and leadership. Therefore not-for-profits are significant contributors to the economy and to the social sector and therefore this sector needs strategic leaders in order to continue being this much relevant (Kanyinga & Mitullah, 2007). Ahmed (2013) observed there were no doubt the responsibilities and work environments of not-for- profit leaders were important. However 21 st century not-for- profit organization leaders must address the challenges of strategic management as well as organizational performance. ______________________  Daniel Mwendwa Kitonga, Walter Okibo Bichanga, Benjamin Kyalo Muema  Jomo Kenyatta University of Agriculture and Technology