Abstract: The purpose of this study was to assess the influence of project M&E Staff capacity on the performance of donor-funded projects. Social Change Theory guided the study. Convergent Parallel Design was adopted with a sample of 81 respondents purposively selected from 27 donor-funded projects in Obunga and Nyalenda informal settlements. Data was collected from project managers, M&E officers, and field officers. Qualitative data was analysed through content analysis, and Quantitative data using SPSS Software version 27. From the findings, staff across the donor-funded projects had access to training and capacity-building opportunities (x̄=3.74, SD=1.170), and they were provided with the requisite working equipment (x̄=3.49, SD=.930). Most of the donor-funded projects were understaffed, with staff capacity built on a need’s basis. The study concluded that the project M&E staff influenced donor-funded projects' performance. The study recommended project follow-up, partnerships and collaboration, and investing in project sustainability. 

Key Words: Donor-funded projects, Monitoring and Evaluation, Staff Capacity, Staff motivation