This study examines the determinants of financial performance of commercial banks in Kenya, focusing on bank-specific factors, macroeconomic variables, and ownership identity. Using a panel data approach with linear multiple regression and generalized least squares, the study finds that bank-specific factors significantly influence the performance of commercial banks in Kenya, except for liquidity. The overall effect of macroeconomic variables was inconclusive at the 5% significance level. The moderating role of ownership identity on financial performance was found to be insignificant. The study concludes that the financial performance of commercial banks in Kenya is primarily driven by board and management decisions, while macroeconomic factors have a minimal impact. Key findings include the significant impact of capital adequacy, asset quality, and management efficiency on bank performance. Capital adequacy positively affects Return on Asset (ROA) and Net Interest Margin (NIM), but negatively affects Return on Equity (ROE). Asset quality negatively correlates with all three performance indicators, indicating that poor asset quality leads to poor bank performance. Management efficiency positively affects all three performance indicators, highlighting the importance of efficient management in driving bank performance. Macroeconomic variables such as GDP and inflation show mixed results, with inflation having a significant negative impact on bank performance. Ownership identity did not significantly moderate the relationship between bank performance and its determinants. The study also highlights the importance of financial performance indicators such as ROA, ROE, and NIM in assessing the profitability and efficiency of commercial banks. The findings suggest that while bank-specific factors play a crucial role in determining financial performance, macroeconomic factors have a limited impact. The study underscores the need for effective management and sound financial practices to ensure the sustainability and profitability of commercial banks in Kenya.This study examines the determinants of financial performance of commercial banks in Kenya, focusing on bank-specific factors, macroeconomic variables, and ownership identity. Using a panel data approach with linear multiple regression and generalized least squares, the study finds that bank-specific factors significantly influence the performance of commercial banks in Kenya, except for liquidity. The overall effect of macroeconomic variables was inconclusive at the 5% significance level. The moderating role of ownership identity on financial performance was found to be insignificant. The study concludes that the financial performance of commercial banks in Kenya is primarily driven by board and management decisions, while macroeconomic factors have a minimal impact. Key findings include the significant impact of capital adequacy, asset quality, and management efficiency on bank performance. Capital adequacy positively affects Return on Asset (ROA) and Net Interest Margin (NIM), but negatively affects Return on Equity (ROE). Asset quality negatively correlates with all three performance indicators, indicating that poor asset quality leads to poor bank performance. Management efficiency positively affects all three performance indicators, highlighting the importance of efficient management in driving bank performance. Macroeconomic variables such as GDP and inflation show mixed results, with inflation having a significant negative impact on bank performance. Ownership identity did not significantly moderate the relationship between bank performance and its determinants. The study also highlights the importance of financial performance indicators such as ROA, ROE, and NIM in assessing the profitability and efficiency of commercial banks. The findings suggest that while bank-specific factors play a crucial role in determining financial performance, macroeconomic factors have a limited impact. The study underscores the need for effective management and sound financial practices to ensure the sustainability and profitability of commercial banks in Kenya.