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Purpose : The purpose of the study was to determine the environmental challenges facing health sector NGOs in Kenya and the strategic responses that health sector NGOs adopt to come with challenges posed by the external environment. Methodology : The research design was descriptive survey study in nature since it focused on all NGOs working in health sector in Nairobi. The target population was 1065 NGOs. A sample of 41 NGOs was selected using the recommended formula for calculating sample size given proportions as recommended by Israel. The respondents were the managing directors of the NGOs. Both qualitative and quantitative data was collected using a questionnaire that consisted of both open ended and close ended questions. The data was analyzed in terms of descriptive statistics like frequencies, means and percentages. The findings were presented in form of tables. Results : The study found that competitive rivarly, threats of new entrants , bargaining power of suppliers, bargaining power of clients, threat of substitutes, changes in law and advancement in information technology contribute to environmental challenges of the organization. Unique contribution to theory, practice and policy: It is recommended that the NGOs train their employees on strategic management and the identification of the environmental factors that challenge NGOs. Specifically, the management of NGOs should be trained on PESTEL and SWOT analysis to facilitate proper environmental scanning.

STRATEGIC RESPONSES BY NGOs IN THE HEALTH SECTOR IN NAIROBI TO CHALLENGES IN THE EXTERNAL ENVIRONMENT