Despite the increase in donor funding to government and NGOs towards poverty reduction programs in developing countries, the state of poverty especially in ASAL regions has been on the increase. 80% of Kenya?s land mass is categorized under arid and semi lands and home to nearly one third of Kenya?s population and 70% of the livestock herd in the country. This study critique donor-funded projects through NGOs, their contribution towards social and economic development of the ordinary citizens in the marginalized zones and at the end suggest practical ways on how NGOs can implement donor aided projects. The study, based on a successful JICA project named Community Agricultural Development project in Semi-Arid Lands (CADSAL) implemented in Elgeyo Marakwet County in Kenya, bring afore critical issues concerning donor aided projects and development that will probably facilitate a new development perspective towards donor aided projects in Africa and Kenya in particular. The study remain a useful self-examination tool for reflection among the Non-governmental Organizations and also used as a reference by academia and donor societies.