There is need for critical service delivery in REA a state corporation which is mandated to accelerate the pace of rural electrification in order to promote sustainable socio economic development. Like any other organizations ,it faces complains about service delivery, it is normal for a human being not to get satisfaction no matter how good a service but organizations will always try and go overboard to please their customers. It is also important to observe that there are notable successes, failures and missed opportunities in the history of State Corporations in Kenya. Financial sector regulators represent notable successes in the service delivery sector, clearly facilitating the positioning of Kenya as a financial, transport and communications hub in the continent and the world at large. In all these cases government entities which were not working optimally were either transformed through engagement with strategic and/or anchor investors, or introduction of missing links in the product value chains, which then added value before these could be partially privatized. The purpose of this study was to investigate the factors affecting service delivery in parastatals in Kenya a Case of Rural Electrification Authority. The objectives were; to find out how organization structure affects service delivery, to find out how communication affects service delivery, to identify how knowledge and skills affect service delivery, to identify service delivery principles and policies in parastatals. To achieve this objective the Researcher employed descriptive research design and made use of questionnaires to collect data from the respondents. The target population of the study was 13 customer service staff working at rural electrification authority and 97 major suppliers.