For the success of any business, there is a need for continuous improvement of the competitive advantage. The ever-changing economic environment is a big challenge for small and medium enterprises (SMEs) especially those that don’t possess strategic plans. In the recent turbulent times caused by globalization, SMEs are facing challenges and this has seen a number of them collapsing. The purpose of this study was to examine the nexus between capacity-building strategic renewal and performance of youth-owned agro-processing SMEs in selected counties in Kenya which variables of the study were investment training, management skills training, and bookkeeping training. The study was anchored on transformation learning theory and the research design adopted was a descriptive cross-sectional survey. The study targeted youthowned agro-processing SMEs registered by the Ministry of Trade and Industry and the four County Governments namely, Nyeri, Kirinyanga, Murang’a, and Nyandarua. The sampling frame was 287 and the population under study was 287 youth-owned agro-processing SMEs. The study gathered primary data using a semi-structured questionnaire with predetermined questions and highly standardized techniques of recording. The findings of the study were presented by the use of descriptive and inferential statistics. From the findings, the overall model of the study was R2 = 0.498, meaning that capacity-building strategies explained 49.8% of the variation in performance. The study coefficients was 0.834, tis 19.141, which was >2, and a p-value of 0.000 which implied that there was a statistically significant influence of capacity-building strategies on the performance of youth-owned agro-processing SMEs. In conclusion, it was noted that capacity-building influences the performance of the youth-owned agro-processing SMEs in selected counties in Kenya. This study recommends that there is a need for SMEs to further establish capacity-building strategies.
