Human resource development practitioners have employed systematic training cycle approach to build competencies of the business trainees cover the years . In this approach training needs analysis forms the principle components of the training as it strengthens foundation for the effective delivery of training programmes. In Marsabit Central and South Districts of Marsabit County, Kenya business training providers have tried applying training needs analysis in their training programmes with mixed levels of successes and failures. Consequently this study was carried out to establish the effects of training needs analysis on the competencies of business trainees in the stud y areas. Using descriptive survey design and simple random sampling techniques, 345 trainees and 81 trainers were surveyed. The study established that at 95% level of confidence, target group analysis(p=0.000) , man analysis (p=0.002) and ad hoc analysis (p=0.000) had significant effects on the competencies of the business trainees However, operational analysis (p=0.720) and community analysis (p=0.945) did not have significant effects on the competencies of the business trainees in the study areas. The study therefore recommends that business training providers should enhance use of target group analysis, man analysis and ad hoc training needs analysis techniques. Further studies are also recommended to establish why the operational and target community analysis did not have effect on the competencies of the business trainees in the study areas