The study was conducted to examine the influence of processes innovation strategy on the performance of commercial banks in Kenya given the dynamism in the business environment hence the need for organizations to move with speed and make choices that add value to customers and those which will enable the organization remains relevant in such a dynamic business environment. Diffusion of innovation theory was incorporated in the study since it widely supports the spread of agency banking, mobile technology, and online banking. An explanatory research design was used. Both primary and secondary data were collected. Primary data was collected using a questionnaire while secondary data was collected from relevant literature materials, the organization’s annual reports, and the website. Cronbach’s Alpha coefficient was used to test the reliability of the data with an acceptable level of 0.7 at a confidence level of 95%. The study targeted tier 2 Commercial Banks in Kenya with the top management bank employees as the key respondents. The target population was 144 top management bank employees. The study employed a census targeting the entire population of 144 top management bank employees. Out of the 144-target population, 120 top management employees responded to the questionnaire hence results from the findings were based on the 120 respondents. Descriptive and inferential statistics were used in analyzing the data. Descriptive statistics entailed the measure of central tendency (mean) and the measure of dispersions (standard deviation). The statistical package for social sciences (SPSS) was used to generate the descriptive statistics. Inferential statistics entailed regression and correlation analysis. Data were presented using tables. The study established that there was a significant influence of process innovation strategy on the performance of commercial banks in Kenya. The findings of the study concluded that mobile banking and internet banking have greatly enabled customers to access essential services in the comfort of their homes or offices and without necessarily having to go to the bank whereas agency banking has significantly reduced the queues in the banking halls and customers do not have to wait for long hours to be served at the bank. The study recommended that banks need to adopt a process innovation strategy in order to enhance performance.
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