Selected Pricing Strategies and Financial Sustainability of Membership-Based Social Enterprises: A case study of the Kenya Scouts Association
Abstract
Social enterprises must generate sufficient income to sustain operations while preserving the affordability and accessibility of services linked to their social mission. The article examined the relationship between cost-based, value-based and market-oriented pricing strategies and the financial sustainability of the Kenya Scouts Association (KSA), a membership-based social enterprise in Kenya. A cross-sectional correlational design was employed. The target population comprised 250 employees and key volunteers at KSA headquarters, and proportionate stratified random sampling was used to select 154 participants. Of these, 141 valid questionnaires were analysed systematically, representing a response rate of 92.2%. Questionnaire data were analysed systematically using descriptive statistics, Pearson correlations and simple and multiple linear regression. Secondary evidence from audited financial statements and organisational documents for 2020–2025 was used to assess financial-ratio trends and the development of pricing policies. All three pricing strategies were positively and significantly associated with perceived profitability and liquidity. Value-based pricing demonstrated the strongest individual relationships with profitability (β = 0.726, R² = 0.412, p < 0.001) and liquidity (β = 0.678, R² = 0.355, p < 0.001). In the combined models, the three strategies explained 52.4% of the variance in perceived profitability and 46.2% in perceived liquidity. Documentary indicators also showed improvement: the operating self-sufficiency ratio rose from 0.824 to 1.248 and the current ratio from 1.240 to 2.554 between 2020–2021 and 2024–2025. These findings support an integrated pricing approach, with particular attention to customer-perceived value, cost recovery and regular market review. Because the survey was cross-sectional and the financial indicators are observational trends, the findings indicate association and temporal correspondence rather than establishing causation.
Keywords: Cost-based pricing, value-based pricing, market-oriented pricing, financial sustainability, social enterprise, Kenya Scouts Association.
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