<p>Abstract</p><p>The research investigates the sustainability and effectiveness of the projects that are funded by the Swedish International Development Agency (SIDA) in Kenya. SIDA is the Swedish central state agency responsible for planning, implementing and managing Aid. The research applies both the absorptive capacity and the institutional theory to explain the phenomenon of Aid projects failures in Kenya. The research has used a qualitative research method, a literature study that blend with structured open-ended interview questions which we have formulated.</p><p>By studying the various Actors involved in Swedish foreign Aid, their operations and deliverance, it will facilitate our study to establish the major causes and origins of development projects failures in Kenya. The main and current Swedish development goals are “improving the standard of living for poor people”, the sub goals are Economic growth, Economic and social equality, Economic and Political Independence, Democratic Development and Protection of human rights, Sustainable use of natural resources, protection of Environment Conflict management and Security. The reason why Aid projects are not producing the intended results could be divided into two parts; the planning problem that emanate from the donors side. The irony is that development partners are viewed to be aiming at alleviating poverty without proper planning and even their priorities are not always right. The other major reason is attributed to the recipients’ side and could be summarized as lack of democracy, corruption, weak institutions, lack of absorptive capacity and mismanagement.</p>

Abstract The research investigates the sustainability and effectiveness of the projects that are funded by the Swedish International Development Agency (SIDA) in Kenya. SIDA is the Swedish central state agency responsible for planning, implementing and managing Aid. The research applies both the absorptive capacity and the institutional theory to explain the phenomenon of Aid projects failures in Kenya. The research has used a qualitative research method, a literature study that blend with structured open-ended interview questions which we have formulated. By studying the various Actors involved in Swedish foreign Aid, their operations and deliverance, it will facilitate our study to establish the major causes and origins of development projects failures in Kenya. The main and current Swedish development goals are “improving the standard of living for poor people”, the sub goals are Economic growth, Economic and social equality, Economic and Political Independence, Democratic Development and Protection of human rights, Sustainable use of natural resources, protection of Environment Conflict management and Security. The reason why Aid projects are not producing the intended results could be divided into two parts; the planning problem that emanate from the donors side. The irony is that development partners are viewed to be aiming at alleviating poverty without proper planning and even their priorities are not always right. The other major reason is attributed to the recipients’ side and could be summarized as lack of democracy, corruption, weak institutions, lack of absorptive capacity and mismanagement.