Health organisations turn to social enterprise as donor funding declines

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LVCT Health is diversifying its income sources through social enterprise to sustain essential healthcare services amid mounting pressure on international donor funding.

The Kenyan health organisation unveiled a new brand on Thursday, reflecting an expanded mandate beyond HIV services and a strategy to strengthen financial sustainability through commercial ventures.

Executive Director Dr Lilian Otiso said over 90 per cent of the organisation’s funding previously came from the US government, exposing it to risks associated with dependence on a single donor. “We recognised that putting all our eggs in one basket was a big risk,” she said, adding that plans to diversify funding began before recent changes in global financing.

It plans to generate income through workplace wellness and mental health services, professional training, safeguarding systems, research and evaluation, and environmental, social and governance support for companies.

It will also explore commercialising research, data and digital innovations, drawing on over 25 years of experience in healthcare delivery and community programmes.

Despite the shift, HIV prevention, testing and treatment will remain central to its work, alongside mental health, maternal and child health, sexual and reproductive health, and gender-based violence services.

LVCT Health reaches over a million youth annually through digital platforms—One2One website, hotline and messaging services.

Dr Anne Musuva, chief executive of the Kenya Healthcare Federation, said social enterprise could help sustain essential services as traditional development financing declines. She said collaboration between government, private healthcare providers, civil society and development partners remained critical to achieving universal health coverage.

It also works with county governments and communities to improve maternal healthcare.