This paper and examines the challenges faced by Jomo Kenyatta Foundation in strategy implementation. The foregoing study was a qualitative one. Data was collected and analyzed to provide useful information and recommendations for academic purposes and improved performance. The key challenge identified was related to changes in the operating environment such as stiff competition compounded by new entrance of important new competitors into the industry and un-anticipated new substitute or competing products. The government policies were also unfriendly to the business orientation. The industry forces, especially the buyers’ power and rivalry within the industry, have led to increased costs in promotions, branding and efforts to enhance JFK’s presence. Other challenges faced include behaviour resistance to change, inappropriate systems especially the structure, traditional public sector culture, unaligned organizational processes and resources used in the organization. The study recommended the enactment of business friendly policy changes so that the creation of a Jomo Kenyatta Foundation that is a commercial state parastatal is prioritised. Furthermore, the proposed alignment of the organization configuration (structure, processes), as articulated in the Strategic Plan 2007-2012, should be implemented to ensure profitability and survival.