Faith-based microfinance banks play a vital role in promoting financial inclusion and socio-economic development in Kenya. However, these institutions continue to face sustainability challenges arising from limited resources, increasing competition, regulatory pressures, and the need to balance social mission with financial viability. This study investigates the effect of strategic capabilities on the sustainability of faith-based microfinance banks in Kenya. Specifically, the study focuses on governance capability, financial management capability, risk management capability, and social responsibility capability. The study adopts a systematic literature review approach, drawing on empirical and theoretical studies anchored on the Resource-Based View, Dynamic Capabilities Theory, and Stakeholder Theory. The review further incorporates organizational learning capability as a mediating variable and operational efficiency as a moderating variable in the relationship between strategic capabilities and sustainability. Findings from the literature indicate that strategic capabilities significantly enhance sustainability by improving financial stability, operational effectiveness, and stakeholder engagement. Governance capability strengthens accountability and decision-making, financial management capability improves resource allocation and financial resilience, risk management capability enhances stability through effective risk mitigation, while social responsibility capability strengthens institutional legitimacy and stakeholder trust. The study also establishes that organizational learning capability plays a critical mediating role by enabling institutions to acquire, share, and apply knowledge, thereby translating strategic capabilities into improved sustainability outcomes. In addition, operational efficiency moderates this relationship by enhancing the effectiveness with which strategic capabilities are converted into sustainable performance outcomes through cost control, process optimization, and improved service delivery. The study concludes that strategic capabilities alone are insufficient to guarantee sustainability unless supported by strong learning systems and efficient operational structures. It recommends that faith-based microfinance banks strengthen their strategic capabilities, invest in organizational learning processes, and enhance operational efficiency to achieve long-term sustainability. The findings provide valuable insights for policymakers, regulators, and practitioners seeking to strengthen the resilience and sustainability of microfinance institutions in emerging economies.