In their endeavor to realize the projects’ objectives, the groups faces a number of challenges. The list below highlights some of these projects challenges, along with suggested solutions ideas to help overcome them.
1. Deficiency in budgetary skills.
Most of these projects are run and managed by members with little or no budgetary skills. These are essential skills where by the groups are required to come up with estimations of costs and returns before commencement of projects, evaluate performance by comparing actual vs. budgeted results at various phases of these projects, analyze variances and come up with remedial measures to bring back performances in line with the project objectives.
2. Lack of financial literacy.
These projects are run by people with insufficient financial accounting and management skills. It makes it almost impossible to account for the money spent and thus financial resources may end being underutilized or diverted to unintended projects altogether.
3. Lack of accountability.
The project participants and related players are not held accountable for their results or lack of achieving all of them.
4. Variations in Economic conditions.
Most of the determinants to economy in Kenya such as inflation rate keep on changing, these makes planning and budgeting almost impossible as the projects ends up spending more than initially expected.
5. Lack of well defined savings plan.
A well defined savings plan coupled with constant saving pattern is essential for the going concern of these projects. Lack of it means that projects can’t sustain themselves from internal sources and will rely solely on external sources. So they suffer greatly when there is slight delay in provision of these funds.
6. Poverty level.
The level of poverty in Kenya is very high. Majority can’t afford essential commodities in life such as food, clothing and housing. So even if these projects provide these essentials at a small charge, the intended lot will to afford them. Most of the children go with only one meal in day, some even go to school or children’s home so that they may get food.
7. Monitoring and evaluation of projects.
In almost all of the projects supported, there is lack of sufficient mechanisms set in places in which the progress of these projects can be monitored on a timely basis and performance evaluated. These is a very important tool that can be used to bring back the projects on track in case there are any deviations from overall project objective.