Kenya experienced a transition to a multi-party form of governance for almost three decades now. The same period has been engulfed with lots of attempts for decentralization. However, with entrance of new regime back in 2002, decentralization gained wide acceptance consequently implemented fairly. This study is moored on an understanding that good governance anchored on clear regulatory framework in the public realm which is an avenue for promotion of suitable local representation and enhancing transparency in decision making. Considering National Government (NG)- Constituency Development Fund (CDF) Act 2003 and Amended in 2007 focusing on project focus and more constituents driven. This study was carried out at Kasipul Constituency, in Homa Bay County where the general completion rates at the moment stands below average. The study adopted mixed method research design where approximately 494 respondents comprising of project beneficiaries, NG-CDF contractors, project managers and government representatives were targeted. Questionnaires, focused discussions and interview guides were used as tools to collect quantitative and qualitative data. Structural Equation Modeling (SEM) was employed to test the hypothesis at 5% level of significance. From the findings, the study rejected the null hypothesis and concluded that regulatory framework has a significant moderating effect on the relationship between technical capacity and effective CDF project management in Kasipul Constituency. There is also need for trainings/workshops meant to increase managers’ expertise, skills and knowledge of implementing CDF project efficiently. On the other hand, personnel can be increased at the county/constituency level to monitor human resource involved in the management of CDF funded projects, coming up with legislation on the appointment of various stakeholders involved in the management of CDF funded projects who will check on the quality of the projects implemented.