Use of ICT in Government has ability to improve service delivery to its citizens, and yet many developing countries have lagged behind in the implementation of E-government. Many e-government initiatives also failed to achieve their objectives in developing countries. This paper therefore aims to identify critical failure or success factors in Kenya, using Heeks’ Factor Model. A survey questionnaire was developed and data were collected and analyzed from officials and interested citizens. The analysis result enabled to highlight seven specific success and failure factors in Kenya. The enablers of e-government projects are good strategy formulation, internal and external drive, employee competence and enough funding, whereas main failure of e-government are weak ICT infrastructure, poor Project management and Design. Data analysis highlights both strengths and weaknesses for each factor or factor. Finally, the study ends up with recommendations for policy makers to shape the future of e-government system in developing countries.