Increasingly economic development is becoming a localized phenomenon and with it there is arnshift in the locus of responsibility for economic development from national to locallevels. Thus,rnlocal governments should have adequate capacity and capacity building has been deployed asrnmeans to accelerate economic development, reduce poverty, and improves service delivery.rnAlong with this theoretical framework; the theories, principles, and practices of Public Sectorrncapacity Buildings underpin the study.rnThe objective of the study was to assess the current practices of capacity building conducted byrnBole Sub City in light of the theories and principle of Capacity Building. In order to achieve thernstated objective,six factors/indicatorswere used. These were capacity need assessment,rnLeadership and Management, level of Capacity Building, Availability of resource, StakeholderrnParticipation, and M & E.rnPrimary data were collected through questionnaires, interview, and focus group discussion;rnwhereas secondary data were collected through document review. The statistical method usedrnto analyze the quantitative data was percentage.rnThe major findings of the study were capacity need assessment was conducting prior to capacityrnbuilding,citizens were involved in capacity gap identification, and evaluationof capacity buildingrnwas conducted. In addition, the leadership and management were supportive and committed.rnThe findings also indicated some problems, for instance non state actors were not involved inrncapacity need assessment, capacity building was not conducted at three levels in an integratedrnmanner to address the human, organizational and institutional changes needed for improvedrncapacity, capacity building interventions mainly focused on individual training, and therewasrnshortage of budget to carry out training & staff development.rnGenerally, the findings indicated that the office has made encouraging progress in practicingrnsome of the factors/indicators of capacity building; however, many works need to be done torntranslate the theory of capacity building into practice. Examining capacity building from thernbroader environment, involving non-state actors, adopting integrated and holistic capacityrnbuilding frameworks, among others, need immediate actions by the sub city. Therefore,rnconducting capacity need assessment at the institutional level, involving non state actors,rnenhancingthe technical capacities of technical experts, employee, integrating capacity buildingrnactivities at various levels, deploying sufficient budge for training, designing frameworks forrncapacity need assessment are recommended