The Social-economic challenges facing countries and societies ranging from poverty, environmental protection, scarce resource as well as disease control and management such as HIV and AIDS, have grown more complex at global, continental and national levels. For instance, Kenya has the fourth largest HIV epidemic in the world. In 2012, an estimated 1.6 million people were living with HIV and roughly 57,000 people died from AIDS related illnesses (NACC, 2012). The existing agencies including private companies, inter-governmental agencies as well as non-governmental organizations often have not sufficiently addressed these problems effectively. Hence, the role of CBOs have been elevated as they become important mechanisms in the delivery of social services and implementation of other development programs, especially in areas where other channels are unable to succeed. Kenya’s Vision 2030 and the current devolved government entrenched in the new constitution have brought a new governance structure which requires participation of citizens at community levels which is easily achieved through CBOs (GoK, 2010). Even with this elevated role, performance of these CBOs in Kenya has not been substantially documented. As the resources available to organizations such as NonGovernmental Organizations (NGOs), CBOs and other CSOs decrease due to the changes occurring in the external environment, such as the recent economic depressions; donor and other funding agencies have become keen to monitor and evaluate the use of the funds advanced to these organizations. As such, this has led to an increased focus and emphasis on better governance, accountability, efficiency and transparency in the use of resources both by government agencies and CSOs.