The service industry plays a key role in economic development through employment opportunities and contribution to revenue stream for governments. But the sector registers poor performance due to lack of financial resources to fund its operations, and even after having service charters and using technology there has been no change. It is thought that using competencies might change the trend of poor performance; therefore this study sought to investigate the effect of core competencies on performance of organizations in the service industry by concentrating on Micro Cap Holding. A cross-sectional design was adopted and 63 respondents picked using simple random sampling technique from the target of 645 employees. The data was collected using semi-structured questionnaires were analyzed through descriptive, correlation and regression analysis. The study results revealed a strong positive and significant effect between core competence and performance. The study recommended that service industry players adopt core competencies so as to increase their performance.