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The knowledge-based view has identified innovative knowledge as what companies require to dominate in an industry. Past studies have dealt with knowledge management too broadly without considering specific aspects of knowledge management which has led to a limited level of understanding on the extent to which the comprehensive nature of knowledge management has influenced firms¿ performance. Even though some companies have implemented knowledge management, there is no conclusive empirical evidence on the influence of knowledge management on performance. It has been noted that performance of Commercial Banks suffer because knowledge is hoarded in scattered silos, fragmented by division, department, region and a host of other organizational factors such as culture, processes and management style. It is against this background that this study sought to investigate the relationship between knowledge management and performance of Commercial Banks in Kenya.