A central question to agricultural extension literature is whether service delivery is responsive to the needs of small holder farmers. Previous research has focussed on the role of methodological characteristics in the technology diffusion. In this thesis, I argue that the effectiveness of extension systems is determined by the institutional arrangements with which services are provided. Using the new institutionalism theory, I analyse how decentralisation and privatisation policies provide an environment for demand driven service delivery to work. Then, the way in which the private, private and non governmental interact in order to reduce the costs of drafting and enforcing contracts. On the demand side, I analyse the effect of farmer organisations in increasing small holder farmers’ access to resources and how they perceive the services that are provided. Data is collected through semi structured interviews with 28 key informants at district, sub county and national levels and a survey of 80 small holder farmers on their attitudes and perceptions toward extension delivery. Research findings suggest that the policy and legal frameworks relating to decentralisation and privatisation shape the environment within which demand driven extension systems in Kabarole District thrive. Shared norms and values determine the level of interaction between actors and their level commitment to the overall principles of demand driven systems. Furthermore, when small holder farmers are organised in groups they are able to gain collective access to resources and also exercise their “voice” in demanding services. The strength of the new institutionalism theory lies in its ability to analyse phenomenon as a system. Demand driven systems involve a number of actors whose behaviour is shaped by social, economic, cultural and political factors. These findings are critical to the decentralisation and pro-poor responsiveness debate which argues that increasing access to extension services to small holder farmers enables them to gain access to resources and also transform into commercial farmers.