Capacity building of members of Vilage savings and loans asociations (VSLAs) has ben ongoing since 191 when CARE first introduced the Methodology in Niger. CARE’sVilage savings and loans methodology proposes that once mature (after 18 months), groups can function with no external suport. However, one of the chalenges to sustainabilty of vilage savings and loans asociations in Suba district is low levels of inancial iteracy. Litle has ben done with regard to establishing how capacity building impacts on sustainabilty of these asociations. The purpose of this study was to examine the impact of Capacity building on sustainabilty of Vilage savings and loan asociations in Suba district. The objectives of this study were: to establish how financial iteracy as a component of capacity building impacts on sustainabilty of Vilage savings and loan asociations in Suba district, to ases the extent o which Selection, planing and management as a component of capacity building impacts on the sustainabilty of Vilage savings and loans asociations in Suba district, to examine how quality of trainer of trainers impacts on sustainabilty of Vilage savings and loans asociations in Suba district and to determine how group quality as a component of capacity building impacts on sustainabilty of vilage savings and loans asociations. The study adopted descriptive survey design where quantiative and qualitative data was colected. Using probabilty and non-probabilty sampling techniques, a sample of 109 respondents drawn from a target population of 130 individuals engaged in VSL activites and 3 informants from CARE WED project providing entrepreneurial skils to VSLAs in Suba district were studied. Quantiative data was sourced through the use of questionaire and was administered to group oficials who are also members engaging in saving and loaning activites. The study was delimited to Suba district, Homabay County, Nyanza province. Data analysis employed inferential statistics. Quantiative data was analyzed by use of statistical package for social sciences (SPS) software/tol to generate frequencies, mean, and corelations. CARE’s GSL MIS was also used as a tol to generate financial variables that indicated group performance and quality. Hypothesis testing involved use of corelation tests at 95 % confidence level. Study findings revealed that here was positve corelation of 0.846 betwen Selection, planing and management and aces of group loan fund which was an indicator that raining SPM increases aces to group loan fund, though it had no significant relationship. Results obtained also revealed that SPM is likely to have contributed to higher number of people engaging in Income generating activites, 98.2% indicated that hey do engage in IGA and only 1.8% did not. The study also examined how quality of trainer of trainers impacted on sustainabilty of vilage savings and loans asociations, 41.3% indicated that heyknew a trainer who left before course package was completed, 58.7% indicated they didn’t know any, and that rainers completed the trainings. Finaly, on group quality, the findings showed that majority, (95%), of members receive loan from group fund indicating that aces of loan fund is high in VSLAs in Suba district. The study concluded that here is no significant relationship betwen financial iteracy and sustainabilty of vilage savings and loans asociations. Key recommendations include encouraging savings and loans asociations to atend financial iteracy trainings for the benefit of their groups. The study sugested that a study should be conducted to determine the influence of loan fund utilzation rate on choice of income generating activites and influence of record keping and loan los among vilage savings and loans asociations.