Abstract:
Capacity building has gained prominence in the development world with increased focus on
measurable results, effectiveness and sustainability but low capacity still persist in most
organizations in Kenya. The purpose of this study was to evaluate the effectiveness of capacity
building in business development services (BDS) facilitating organizations in Kenya.
Conducted between May and July 2012 in 40% (61) BDS facilitating organizations using
descriptive research design, a sample of 183 respondents was obtained using systematic and
stratified random sampling techniques. The data was collected using self-administered semi-
structured questionnaire and analyzed using descriptive & inferential statistics. The study
shows that capacity building has been carried out in 79% of the BDS organizations in Kenya,
30% having on going but only 25% have deliberate, stand-alone capacity building projects.
Most organizations use eclectic capacity building methodologies of moderate quality of
implementation but training is the most widely used method- 55%. The results show average
capacity or performance in BDS organizations but with leadership, financial self-sufficiency
and sustainability still performing poorly. The study confirmed that capacity building though
moderately effective, improves performance in BDS facilitating organizations with the level of
improvement depending on methodological, organizational and environmental factors. There
was some extent improvement on efficiency, effectiveness, relevance, ownership, participation,
outreach and impact variables, due to capacity building. Using regression model the researcher
found that capacity building accounted 51.9% of organisation performance in Kenya. More
focus should be on use systemic approach, enhancing methodology, and leadership, financial
management and sustainability. Future study should assess how deep capacity building affect
organization financial performance and effects of specific environmental factors.
