Non-Governmental Organisations in the country received Sh6 billon from undisclosed sources between 2013 and 2014 raising concern from the government.
According to a report released by the NGO Coordination Board, the civil society organisations received more than Sh120 billion for projects between 2013 and 2014.
The board said the organisations received over Sh100 billion from donors abroad, Sh18 billion from within the country while more that Sh6 billion came from “unspecified sources.”
According to the NGO Coordination Board Director Mr Fazul Mahamed, the government is concerned over accountability after the organisations failed to explain the source of their funds.
“It was not possible to independently verify from which country or source the 6 billion (5 per cent of total funding) was from,” said Mr Mahamed while presenting the report to stakeholders at the Kenyatta International Convention Centre on Tuesday.
The government has been monitoring NGOs activities in the country following revelations that some are funding terrorism activities.
In December last year, the board deregistered 15 NGOs for allegedly funding terrorism activities in the country and the region.
Another 510 charitable organisations were struck off the list for failing to file their audited reports as required by law.
Data presented by the charity organisations oversight body on Tuesday showed that out of the Sh120 billion the NGOs received as donations, just Sh87.6 billion was spent in the last financial year.
The health sector was the top beneficiary of the donor funds with Sh71.4billion (23 per cent) followed by HIV/Aids (15 per cent), agriculture and children at eight per cent.
Another Sh16.2billion was spent on projects in other countries.
The report show that more than Sh10 billion was spent on administration costs, Sh26 billion on local staff, Sh2 billion on international staff and Sh5billion on other running costs.
In the analysis, Mr Mahamed said Kenya had 9,728 registered NGOs by 2014 but only 7, 258 were active.
“In the 2013/2014 financial year, 1,800 of these organisations were set up with most of them dealing in education, health and relief services,” he said.
Nairobi registered the highest number of NGOs in the past financial year at 242 while Lamu County had the least with only 12 organisations.
The study further shows the sector has employed 77,295 people and of these majority being Kenyans.