Purpose: The purpose of this study was to determine the effect of operational strategies on the performance of commercial banks in Makueni County in respect to banking services. The specific objective of this study was to investigate the influence of debt recovery, promotional strategies, employee training, the quality of bank services and products on the performance of commercial banks in Makueni County. Methodology: The study used cross-descriptive research design and data was collected using a questionnaire. The target population of this study was bank employees with managerial roles and responsibilities; the bank managers and their assistants. The bank managers and their assistants were targeted because they are familiar and are actively involved in the development of operational strategies of commercial banks. Since the population was small census was used to select all the bank managers and their assistants to form a sample size of at least 130 study participants. The data collected was analysed using descriptive and inferential statistics with the aid of SPSS version 21. Findings: Both the correlation and regression results revealed that there was a positive and significant relationship between debt recovery, promotional strategies, quality of services and products and employee training and performance of commercial banks in Makueni County. The theories tested in this paper included; resource based view, theory of constrains and contingency theory. Recommendations: The study recommends that the bank managers should keep on developing and implementing policies which improve on their operational strategies. The quality of their products as it is likely to impact on their performance positively. The government of Kenya should develop strategies to ensure that loans given by commercial banks are paid off to ensure commercial banks remain competitive just like all the other financial institutions in the country. More research needs to be conducted on the specific operational strategies so as to obtain in depth information on how each operational strategy influence performance of commercial banks.
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