ABSTRACT
Projects have become an integral part of organizations’ strategy. Health projects in particular, have been found to carry out a critical function in enhancing the well-being of society. In Kenya, many health projects are funded by donors. Although the amounts of funding from donors have been rising over the years, most donor funded health projects in Kenya are not performing well. According to the World Health Organization, almost 50 percent of health projects in Kenya do not achieve the performance measures of cost, time and quality. Recent studies have demonstrated that the macro environment comprising of the economic, social-cultural, political, technological, legal and the physical environment has a significant effect on the performance of government funded projects.