The purpose of this study was to provide insight into contextual factors predicting the extent of principals' sense of self-efficacy, or capacity, for instructional leadership, school management, and parent engagement in public schools in the city of Bishkek following Kyrgyzstan's decentralization reforms post-independence. Findings indicate three contextual factors influencing principals' capacity that deserve attention in developing school leadership training: (i) principals' sense of job satisfaction; (ii) their perception of the effectiveness of instructional supports in improving student learning; and (iii) teacher capacity for maintaining communication with parents. Findings pointed to the significance of the emerging elitization of public schools in Bishkek, and parental pressures for extra-curricular, enrichment to promote student-centered learning that influence school leadership. The study expands the literature on school leadership in the context of decentralization, particularly in post-Soviet countries.