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The study was conducted to assess influence of product differentiation strategy on performance of commercial banks’ diaspora remittances in Kenya. The evolution of globalization, regionalization and deregulation experienced in the world of business has exposed the business entities to a lot of competitions both locally and internationally. Commercial banks in Kenya have not been spared of the stiff business competitive environment. The commercial banks have resulted into using competitive strategies such as product differentiation strategy. Generic Framework Theory was incorporated in the study since it widely supports the establishment of transaction levies, transmission channels and products innovation, Explanatory research design was used. Both primary and secondary data were collected. Primary data was collected using questionnaire while the secondary data was collected from relevant literature materials, organization’s annual reports and website. The data collection instrument of the study was considered reliable since it attained the Cronbach’s alpha coefficient of 0.795. The study targeted 126 managers of the commercial banks based in their specific headquarter offices in Nairobi. The sampling procedure was done by use of Krejcie & Morgan sampling table giving a sample of 95 managers. The pilot study was based on 10% of the research population giving 13 respondents that were randomly selected. Descriptive statistics which comprised of mean and standard deviations were computed. Inferential statistics which included correlation and regression analysis were also computed. SPSS version 25 was used to aid in data analysis. The study results established R2 of 0.616. Data was presented using tables. The study concluded that product differentiation strategy has a significant influence on performance of commercial banks’ diaspora remittances in Kenya. The study recommends that commercial banks must invest in innovation that can help identify and communicate a product or company's special qualities while highlighting the key differences between that product of a company and others. The study recommended that banks need to adopt product differentiation strategy in order to enhance the performance of Commercial banks’ diaspora remittances in Kenya.

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