Enhancing Construction Project Labor Productivity in Kenya

The construction industry in Nairobi City County, Kenya, significantly contributes to economic growth, infrastructure development, and job creation. However, rapid urbanisation has exposed inefficiencies such as project delays, resource constraints, and low labour productivity. This study aimed to examine the influence of technology adoption, specifically safety technology, Building Information Modelling (BIM), construction automation, and remote monitoring on labour productivity in the construction sector. Guided by the Theory of Constraints, the study sought to identify how technology alleviates productivity limitations in construction processes. The specific objectives were to establish the influence of safety technology and assess the impact of BIM on labour productivity. The research targeted a population of 2,610 construction professionals in Nairobi, including engineers, architects, quantity surveyors, contractors, technicians, and artisans. A sample size of 261 was selected through simple random sampling. Primary data were collected using semi-structured questionnaires and interview guides. The questionnaires featured closed-ended and Likert-scale questions to gather quantitative data, while interviews provided qualitative insights. The study achieved an 88% response rate (230 responses). Data analysis was conducted using SPSS, employing correlation, regression, and ANOVA techniques. The results revealed a significant positive correlation (r = 0.386, p < 0.05) between technology use and labour productivity. Regression findings showed that technology use accounted for 14.9% of the variance in productivity levels. The study concludes that technology adoption enhances efficiency, safety, and project outcomes in Nairobi’s construction industry. It is recommended that construction firms invest in affordable technologies and capacity building. Policymakers should support technological innovation through training and incentives. Further research should explore the impact of artificial intelligence and digital tools in other regions of Kenya and Sub-Saharan Africa.

Firm performance has become an enormously significant focus in today's business environment, especially by construction small and mid-size enterprises (SMEs) management. Strong performance translates into higher revenues, profits, and returns on assets, enabling the firm to invest in growth opportunities and ensure its long-term sustainability. Nairobi City County has been on the frontline to ensure SMEs in the construction sector are revamped well to be on the global map and support the country's economic growth. However, despite the effort, 60% of the Nairobi City County SMEs in the construction sector fail to break even to make a profit, thus the need for this research aimed to investigate impact of strategic organizational resilience on how SME perform in the Construction Industry within Nairobi County, Kenya. Distinct objectives here include: To establish impact of organizational learning, adaptive resilience, planned resilience and dynamic capabilities on progression of SMEs within Construction sector of the Nairobi City County, Kenya. This study adopted a descriptive type of research design, and rooted on Resource Based View theory, the Balanced Scorecard Model and the Dynamic Capabilities theory. The target population comprised of 108 registered small and mid-size enterprises firms operating in Nairobi City County with 198 respondents comprising of site manager and project engineers. The study utilized primary data collected from semi-structured type of questionnaire. The questionnaire had both open and close-ended queries. The research supervisor examined the validity of the data instrument. Using the Cronbach's alpha measure (α), variability was ascertained. The quantitative data that was obtained, assigned codes and fed into software called Statistical Packages for Social Scientists (SPSS Version 25) and subsequent analysis was done with descriptive statistics. The researcher used a multiple regression analysis to quantify how strongly related variables were in the study. Responses were summarized, using tables and figures, for additional analysis and for the researcher to be able to compare interesting trends. Different quantitative measures such as tabulations, percentages, and measure of central tendency (Mean and standard deviation) were applied when reporting the findings. Before then, through the normality and multi-collinearity test conducted, the Shapiro-Wilk test p-values except for the planned resilience variable, indicated that the data for organizational learning, adaptive capability, dynamic capability, and firm performance do not significantly depart from normality. Through Pearson correlation, and multi-regression analysis, organizational learning, adaptive capability, and dynamic capabilities exhibited a statistical and strong positive correlation with firm performance, while planned resilience and SMEs performance revealed a weak and non-significant value. The study however, recommends small and mid-size enterprises to embrace organizational learning. show value and promote the culture of continuous learning and improvement among its human personnel. Feedback and lessons learnt from past trainings should be incorporated actively into the current and the upcoming organizational projects. SMEs should have the capacity to not only adjust but also respond effectively to the dynamic circumstances, hurdles and the opportunities in its external environment. Moreover, SMEs should undertake proactive measures to scan emerging trends and opportunities and in turn create an environment that welcomes innovative ideas and changes that can further be explored. Position themselves in such a flexible manner that they can effectively respond to environmental dynamics through intentional creation, extension and modification of its resource base. Establish powerful stream of partnerships. Put up strategies in check to aid in sustainability of the implemented components of strategic resilience. Foster a culture of curiosity, questioning with progressive productivity within an organization. Key Performance indicators should be examined to gauge the growth of the firm in addition to any behavioral changes.

Contract variations are a common phenomenon in building projects, often leading to time overruns, cost escalations, and dissatisfaction among stakeholders. Despite numerous studies on variation orders, there is limited empirical evidence on their effects on building project delivery within the Nigerian context. This study assessed the effects of contract variations on building construction delivery, with a view to identifying critical causative factors, their impacts on performance, and possible mitigation strategies. A quantitative research approach was adopted using a structured questionnaire administered to 100 construction professionals comprising clients, consultants, and contractors, with a response rate of 92%. Descriptive and inferential analyses were conducted using Frequency, Mean Item Score (MIS), and Spearman’s rho correlation. The findings revealed that the most significant factors responsible for contract variations were consultants’ lack of experience, design complexity, and additional client instructions (MIS = 5.00 each). The major effects identified included time overruns and end-user dissatisfaction (MIS = 5.00), while loss of efficiency due to work interruption (MIS = 4.84) was the most critical impact on project performance. A strong positive correlation was observed between consultant experience and time overrun, indicating a direct relationship between technical expertise and project timelines. The study further established that loss of profit (MIS = 4.26) and reduced organisational performance were major consequences at the organisational level. Key mitigation strategies include effective communication, proper site investigation, comprehensive design documentation, and interdisciplinary collaboration. The study concludes that effective management of contract variations can significantly enhance project delivery outcomes, cost performance, and client satisfaction in building projects.

Employees are the driving force of any organization determining the growth and stagnation of organizations. Employees performance is critical to the survival of any business thereof employees need to be offered something extra apart from salary and wages inform of employee welfare, it is a mere waste when a business only centers on the efficient and high performance from its employees and do not bother on their benefits. Employee welfare is an important phenomenon in any organization today since they play key role in the existence and growth of an organization therefore, their welfare is very essential. The specific objective was to determine the effect of intra mural facilities and performance of employees of five-star hotels in Nairobi City County, Kenya. The study was anchored on two theories namely, Herzberg two factor theory and Functional theory of Labour welfare. The research employed survey research design. The population target comprised of four five-star hotels in Nairobi City County, Kenya. The study used a sample of 92 employees drawn from the Villa Rosa Kempiski, Sarova Stanley, Radisson Blue and Sankara Nairobi. The study used stratified random sampling in identifying respondents. A pilot study was conducted in Tribe Hotel in Nairobi City County; to ensure feasibility 9 participants (10% of the sample) was selected via simple random sampling the pilot study findings were not included in the actual study. The research adopted a content validity; to evaluate content validity the researcher used an expert that is the project supervisor to appraise the measuring instrument. The reliability of the research instrument was examined using Cronbach alpha coefficient. Data was collected using a questionnaire. The analysis of data was done using descriptive analysis and inferential statistics. The study established that intra mural facilities had a positive and significant influence on the performance of employees of five-star hotels in Nairobi City County, Kenya as indicated by R2-value (R2=0.152, p < 0.05). The study concluded that there was proper provision of employee welfare services which imply that employee welfare programs were highly provided by the five-star hotels in Nairobi City County, Kenya which could be instrumental in delivery of services and high performance due to their good health hence high performance. The study also concluded that Hotels implement welfare programs to prepare their employees to be efficient, loyal, healthy, and satisfied. Medical facilities, education for employees' families, and assistance in improving their life living standards help employees focus on their jobs. The study recommended that employee welfare should be defined as the services, facilities, and amenities that may be established in or near businesses to allow the employees to do work in a healthy and peaceful environment, as well as to have access to facilities that improve their health and morale. The study also recommended that the hotels should devise and implement a system to encourage and implement employee transportation, as well as provide transportation allowances to motivate employees and improve their work performance.

Venture capital investment is concept that has increasingly attracted an attentions and expansion in the recent past. Many developed countries have so far embraced this increasing the production firms increasing and improving their national income generation and thus spurring economic growth. On the other hand, this is not the case with developing countries. Thus, this study seeks to examine the determinants of venture capital investment among developing economies, in which the case study was Kenya. The study objectives were; to examine the effect of financial innovations on the growth of venture capital in Nairobi city County, Kenya; to assess the influence of corporate governance on the growth of venture capital in Nairobi City County, Kenya; to establish the effect of diversification on the growth of venture capital in Nairobi City County, Kenya. Four theories underpinned the study that is the pecking order theory, portfolio theory and stakeholder theory and resource-based theory. Also, this study employed a descriptive design. The target population for the current study was a total of 33 venture capital firms operating within Nairobi City County. The respondents were a total of 33 fund’s managers, and 76 employees from the firms making a total of 109 respondents. Questionnaires be used in primary data collection. The validity and reliability were ascertained through content validity where a research expert and supervisor were employed for validity while pilot test was conducted to ascertain reliability by calculating Cronbach alpha to measure the internal consistence. The threshold of the Cronbach's bar alpha is 0.7. Data collection was done where questionnaires were distributed to the respondents using the drop and pick method and the respondents were then be allowed a two-week period respond to the questionnaire. Collected data were then be analysed using descriptive statistics, that is, frequencies, percentages, standard deviation, and mean. A Statistical Package for Social Sciences (SPSS) was used for data analysis. Findings were presented using bar charts, graphs, and diagrams for the purpose of easy analysis and interpretation. The study further conducted six diagnostic tests to ascertain normal distribution of data and to check internal consistence. Lastly, the study was done under strict ethical considerations that is an introduction letter was sought from the university, and research permit sought form the national commission for science, technology and innovation and respondent. From the results, three variables financial innovations, corporate governance and diversification depicted a positive and significant influence on the growth of venture capital in Nairobi County, Kenya. This implies that holding the three factors (FI, CG, and D) constant, the growth of venture capital in Kenya improved by 0.542 units at 0.008 level of confidence.

The absorption of capital budgets is a crucial factor in the effective delivery of public services, particularly in large urban centers such as Nairobi City County.Ineffective absorption rates result in stalled projects, underutilization of allocated funds, and unmet development goals, leading to a backlog of unimplemented projects, deteriorating infrastructure, and growing public dissatisfaction.The study sought to determine the effects of budget planning on the absorption of capital budgets by Nairobi City County.The research employed descriptive design, targeting 200 senior management, budget officers, procurement officers, financial managers, and project implementation staff responsible for overseeing and executing capital budgets.The study used a questionnaire and an interview guide to collect the primary data.Quantitative data was analysed using mean, standard deviation, regression and correlation, ANOVA and Fisher's Test while qualitative data was analysed using content analysis.Based on the study findings, it can be concluded that the absorption of capital budgets by Nairobi City County is moderately effective, facing significant challenges despite a largely qualified and experienced workforce.While there are perceived strengths in legal compliance during budget planning and accountability through auditing, critical weaknesses persist across all stages, particularly in the lack of flexibility in budget reallocation.The study recommends that Nairobi City County should implement more flexible budget reallocation mechanisms to adapt to unforeseen project needs and facilitate timely fund utilization.A future study could explore the specific impact of political interference on capital budget absorption rates in county governments.

Purpose: Policy networks approach has gained prominence among scholars due to myriad complex problems in public policy processes and management. Yet, many policies are designed and implemented without meaningful participation of citizens particularly through the informal institutions of policy networks. Despite its vital role in allowing different stakeholders to come together, share their expertise and knowledge, and work to create effective solutions to public policy issues many public making processes seems to have considered policy network collaborations to low extent. Furthermore, other benefits of policy network collaborations such as allowing different perspectives to be heard and considered leading to more informed and effective public policy. Considering that, this study interrogated the effect of policy network collaboration on public policy process outcomes in the road transport sector in Nairobi City County, Kenya.
 Methodology: The study adopted a descriptive research design. The target population of the study was 470 policy actors in the road transport sector within Nairobi City County out of which 407 were purposefully sampled to respond to the questionnaire and 45 were sampled to participate in focused group discussions as well as key informant interviews. The sampling approach adopted was a purposeful sampling procedure. A mixed methodology was adopted whereby both quantitative and qualitative data was collected through structured questionnaires, key informant interviews and focused group discussions. The quantitative data was analyzed through descriptive statistics that is mean, frequencies and percentages as well as regression analysis. On the other hand, qualitative data was analysed through thematic analysis and reported in a narrative format.
 Findings: The findings established that the level of policy network collaboration involving but not limited to information sharing, cooperation and agreement in road transport sector within Nairobi City County, Kenya was very high which was associated with a positive and significant effect on policy process outcomes.
 Recommendations: The study recommends the policy makers and stakeholders in the transport sector in Nairobi City County to develop a shared understanding of the public policy process, increase transparency and communication in the process, encourage cross-sector collaboration, utilize technology in enhancing collaboration as well as develop a culture of trust in the policy making process as a way of improving policy network collaboration.

Non-Governmental Organizations (NGOs) play a crucial role in addressing various social, economic, and environmental issues in Nairobi City County, Kenya. However, their efforts are often hindered by a range of challenges that impede their effectiveness and sustainability. Thus, this research examined how strategy implementation practices affect service delivery within the National Council for NGOs in Nairobi City County, focusing on the roles of staffing levels, financial resources, organizational structure, and cultural practices in shaping strategic execution. The study applied resource-based view, institutional, contingency, and cultural dimensions theories as theoretical anchors. Using a descriptive research design, data was collected from all 90 council employees comprising 25 senior managers and 65 middle-level managers through a full census approach. Instrument validity was confirmed through content validation checks, and reliability was established through Cronbach's Alpha testing. Research findings were analyzed using descriptive and inferential statistics and presented in tables and figures. The study's findings provide valuable insights to various stakeholders including NGO management and leadership, government officials, policy makers, employees, donors, community members, and researchers. Findings indicated that service delivery at the National Council for NGOs in Nairobi was positively influenced by staffing levels, financial resources, organizational structure, and cultural practices. The study confirmed that adequate staffing directly supports prompt and effective service provision, while sufficient financial resources enable the Council to expand operational capacity, reach more beneficiaries, and provide comprehensive services. Clear organizational structure delineates roles and responsibilities, ensuring members understand their specific duties, while cultural practices facilitate partnerships with local leaders and community groups, enhancing collaboration and resource sharing. The research recommends that NGOs should assess whether current staffing levels meet service delivery requirements and conduct continuous capacity-building exercises for staff and stakeholders in financial management, budgeting, and reporting. NGOs should clarify roles and responsibilities within organizational structures to ensure effective management and decision-making while developing comprehensive policies regulating organizational operations, including conflict resolution, transparency, and ethical standards. Additionally, NGOs should implement cultural awareness programs to enhance staff understanding of cultural diversity, enabling more effective engagement with diverse communities and improved service delivery outcomes. Keywords: Strategy Implementation Practices, Service Delivery, Non-Governmental Organizations, Nairobi City County, Kenya

Youth unemployment is a subject of great concern in the developing world, particularly in developing nations, and among them is Kenya. These countries are characterized by the high population of youths who make up the majority of the unemployed in the nation. Governments and non-profit organizations are partnering to eradicate poverty and unemployment among the youth. To achieve this, novel ways, such as promoting digital skills training programs such as WFP's EMPACT and the Ajira. This research sought to address these shortages by analyzing the management practices and sustainability of training programs on WFP's EMPACT and the Ajira Digital skills training project in Kibera. It used a systematic sampling method of data collection accompanied by questionnaires. The results from this research will give a starting point for understanding the project's potential in Kenya and not just in Kibera. It will also provide insights and recommendations for the project's second phase by the Ministry of Planning in its efforts to use digital skills to end youth unemployment in the country. This study aimed to assess management practices and the sustainability of training programs. It was a case study that involved two training programs i.e. Ajira Digital training program and WFP’s EMPACT. Data was collected in Kibera slums in Nairobi City County. Its main objectives were to investigate how stakeholder participation affects the viability of digital skills development programs in Kibera slums, to ascertain how risk management strategies affect the viability of programs for teaching digital skills in Kibera slums, to establish the impact of evaluation and monitoring on the sustainability of the programs for teaching digital skills in Kibera and to examine how budgeting affects the viability of initiatives for teaching digital skills in Kibera slums. Questionnaires were used for data collection. The questions were close-ended. Data collected was examined systematically and then carefully analysed using EXCEL and SPSS. From the descriptive statistics results it was found out most of the respondents agreed to a great extent that leadership skills, project communications, resource allocation and cost management skills have an influence on the sustainability of the digital training programs a case of digital skills training projects in Kibera slums, Nairobi city county, Kenya. From the regression analysis it was revealed that leadership skills have a positive (B=.283), project communication has a negative (B=-112), resource allocation has a positive (B=0.496) and finally cost management skills have a positive (B=0.449) influence on the sustainability of the digital training programs a case of digital skills training projects in Kibera slums, Nairobi city county, Kenya. The overall model was considered first to explain the sustainability of digital training programs. The study therefore concluded that leadership skills have a significant and positive influence on the sustainability of digital training programs project communication has a negative but insignificant influence on the sustainability of digital training programs resource allocation has a positive and significant influence on the sustainability of the digital training programs that cost management skills positively and significantly influence sustainability of the digital training programs. The study recommends that management skills (leadership skills, project communication, resource and allocation and cost management skills ought to be considered as significantly influencing the sustainability of digital training programs.

Purpose: The purpose of this study was to establish the factors affecting revenue collection in Nairobi City County Government.Methodology: The study adopted a descriptive research design. The study population comprised of a total of 340 members of staff working as chief officers, technical staff and members of Nairobi City County assembly. The sample size was determined using the Fischer's formula. The sample size for the study was 180 which was distributed proportionately among the strata. The study used a survey questionnaire as a research instrument. Data collected was analyzed with the help of SPSS by both descriptive and inferential statistics. The results were presented in form of tables and graphs. The study adopted a multivariate regression.Results: The study found that revenue diversification affect revenue collected through number of sources of revenue and new policies to a great extent. Tax administration affects revenue in Nairobi City County through competent staff, availability of computers, and availability of postal communication system and tax education. Tax structure affects revenue collection through flexibility, equitability, neutrality and simplicity while different forms of revenue (property, business license) affect amount of revenue collected. Revenue diversification had a positive and significant relationship with amount of revenue collected whereas different forms of revenue collected had positive and significant effect on amount of revenue collected in Nairobi City County.Unique contribution to theory, practice and policy: The study recommends on the use of latest technology and competent staff in tax administration, also there should be more innovations to have diversified sources of revenues in Nairobi City County in order to collect more revenue. The financial managers and policy makers in Nairobi City County assembly should come up with new sources of revenues and taxes that obey the canon law of taxation that is economical, simple, flexible and easy to administer.

Purpose: The main purpose of the research was to examine the effect of indirect individual based participation on service delivery in Nairobi city water and sewerage company, Nairobi City County,Methodology: The research was premised on a descriptive research design with convenient random sampling being utilized. The study relied on both primary and secondary data. The study utilized a questionnaire to collect primary data. Secondary data was obtained from periodicals, journals and other relevant materials available in the internet as well as from the physical library. The collected data was analyzed using descriptive and inferential statistics.Findings: The study concludes that the management should seek to enhance the adoption of both indirect participation elements such as work unions and collective bargaining agreements as tool of supporting better service delivery.Unique Contribution to Theory and Practice: The study helps in enhancing the available empirical knowledge on how the effect of indirect individual based participation on service delivery in Nairobi city water and sewerage company, Nairobi City County, Kenya.

Adoption of a sports culture occurs when people make sports to be part of their lives. This study investigated the mediating role of lifestyle habits and the moderating role of socio-ecological factors in the relationship between the integrated marketing communication mix elements and adoption of a sports culture among academic staff members of chartered public universities in Nairobi City County, Kenya. The inquiry was based on the theory of planned behaviour (TPB), communication theory, Attention-Interest-Desire-Action (AIDA) model, and the diffusion of innovation theory. The realism paradigm and a descriptive survey research design were used for the study. The researchers sampled 372 academic staff members from five chartered public universities based in Nairobi City County using stratified random sampling. Binomial logistic regression was used in the data analysis since the dependent variable was categorical in nature. The study established that integrated marketing communication mix elements predicted the adoption of a sports culture, with lifestyle habits mediating and socio-ecological factors moderating the relationship between integrated marketing communication mix elements and adoption of a sports culture by the academic staff members of the identified institutions. The study recommends that managers of health-promoting sports clubs should consider the integrated marketing communication mix elements, lifestyle habits, and socio-ecological factors when designing their communication programs.

There is no doubt that charitable organizations are critical contributors in the provision of essential services of public interest. In the recent past, the number of people contributing to charity has been reducing due to lack of financial accountability and performance concerns. The environment these organizations operate, therefore calls for leaders who will come up with radical new ideas that will enable them re-invent their organizations to perform. The study sought to find out how strategic leadership impact performance of Charitable Ambulance Services in Nairobi City County. Study objective was to examine the outcome of strategic direction, operational efficacy, human capital development, and strategic control on the performance of charitable Ambulance service organizations in Nairobi City County. The researcher used resource-based view, upper echelon and contingency theories to anchor the study on the outcome of strategic leadership practices on organizational performance. Descriptive design research was used by the researcher. Target population comprised of 144 Managers and staff, a sample of 130 responded giving a response rate of 90.28%. Data analysis was conducted using SPSS software using descriptive statistics to infer to the data and connection between independent and depend variable were found using multiple regression. Pilot study was done to pretest the questionnaire. The study results show that strategic direction correlate with performance up to 22.3% which is a weak positive correlation with organizational performance. A unit change in strategic direction yields 0.171 positive changes on performance of charitable ambulance services in Nairobi County. Operational efficacy correlates with performance up to 63.4% which is a strong positive correlation. A unit change in operational efficacy yields 0.735 positive changes on performance. Human capital development correlates with performance up to 49.7% which is an average positive correlation. A unit change in human capital development yields 0.422 positive changes on performance. Strategic control correlates with performance up to 47.6% which is an average positive correlation. A unit change in strategic control yields 0.270 positive changes on performance. The Overall, analysis showed that strategic leadership practices correlate with organizational performance of charitable ambulance services up to 69.3% which is a strong positive correlation. A unit change yields 0.108 negative change in strategic direction, 0.599 positive change in operational efficacy, 0.120 positive change in human resources development and 0.135 positive change in strategic control. This change is statistically significant, meaning that strategic direction, operational efficacy, human resource development and strategic control influence on organizational performance significantly. The study recommends replication of the study using the same variable with other sectors. The study informs the strategic leadership practice in academia, students in strategic management will use the variables used in this study to study the different sectors contributing to academia. The outcome of the study is valuable to charitable ambulance service organizations as it will inform the strategic leadership practices and their influence on organizational performance.

Purpose: The main focus of the study was to establish how strategic customer retention practices influences performance of automotive firms in Nairobi City County, Kenya. The study specifically focused on establishing the influence of customer support programs, technological advancements, and strategic communication practices and customer’s motivation programs on performance of automotive firms in Nairobi City County, Kenya. The study was anchored on Expectancy Theory, Diffusion of Innovation Theory, Communication Theory and Customer Service Theory. Methodology: The study employed a descriptive survey research design and targeted 18 franchised automotive firms registered by Kenya Motor Industry Association. The unit of observation comprised of employees in strategic, marketing and IT departments. A total of 80 respondents were involved in the study. Primary data was utilized in the study and was gathered through 5-point Likert scale structured questionnaires. Both descriptive and inferential statistics were adopted in analyzing the collected data. The statistics were generated by help of SPSS software and results presented in form of tables and figures. The study conducted a pilot test before the main study on two randomly selected automotive firms to assess the reliability and validity of questionnaires. Respondents involved in the pilot study was not be included in the main study. Findings: The study established that strategic customer retention practices accounts for 61.8% in variations of performance of automotive firms in Nairobi County. The study further established that strategic customer retention practices comprising of customer support programs, technological advancements, and strategic communication practices and customer’s motivation programs positively and significantly influences performance of the firm. This was depicted by beta values of 0.508, 0.324, 0.216, and 0.196 and significant values of 0.000, 0.000, 0.007, and 0.012. Unique Contribution to theory, Policy and Practice: The study concluded that enhancing the strategic customer retention practices leads to enhanced performance levels of the firms. The study provided recommendations to the management of the automotive firms to enhance aspects of customer support programs, technological advancements, and strategic communication practices and customer’s motivation programs since the practices leads to enhanced performance levels of the firms.

Direct government regulation of Saving and Credit Cooperative societies (Saccos) in Kenya came about through legislation enacted by the Kenyan parliament, the Sacco Act of 2008. The regulations were necessitated by the need to give proper structures and prudential standards to Saccos especially those involved in deposit taking activities referred to as Front Office System Administration (FOSA). The FOSAs carry out banking business with members of the public most of whom are not their members. Since the Saccos were not regulated by Central Bank of Kenya or the Banking Act, the government forged direct regulation through Sacco Society Regulation Authority (Sasra). This study therefore sought to investigate the effect of government regulation on performance of small Saccos in Nairobi City County, Kenya. Specifically the study sought to determine the effect of regulation requirements: statutory deposit fund, management qualification, and quality and membership on the performance of small Saccos. The study used survey research design while the target population comprised of all small licensed deposit taking Saccos in Nairobi City County. Data was collected by use of structured questionnaires. The main finding of the study is that implementation of government regulations has improved performance of the Saccos. Statutory deposit regulations positively affect Sacco liquidity while members also showed confidence in qualified managers based on performance but felt that membership regulation is punitive. In conclusion the regulation has positive effects on Saccos and hence the study recommends compliance by Saccos to the regulations.