Abstract:
The post-industrial era comes with high external and internal challenges that have affected the
manufacturing sector. Sugar firms are among the firms in Kenya facing challenges of resource constraints and
management issues leading to poor production. Hence, firms need to access internal employee capabilities to
combat the challenges of organizational productivity. The aim of this study is to assessed the relationship
between employee capacity building and organizational productivity. This was anchored on human capital
theory. A correlational research designs was adopted where census of all the target population of 218 managers
working in 8 sugar companies in Kenya was used. Primary data was used in the study: these data was gathered
through the use of a structured questionnaire and data extraction document. Quatitative approach that involved
the descriptive statistics and inferential was used. The descriptive used mean and standard deviation while the
inferential used simple linear regression analysis. The findings revealed that employee capacity building
practices which were achieved through training, induction, motivation and employee retention had positive
relation with the productivity of sugar industry. However, the industry did not have periodic reviews on
employee motivation. Hence, the study concluded that there was positive significant relationship between
employee capacity building and organization productivity
