This study sought to determine the relationship between Emotional Intelligence (EI) and leadership styles of managers among selected banking institutions in Kenya. It proposed that EI, which is the ability to perceive, understand and manage emotions predicts transformational leadership (TL) style. The leaders' EI scores were obtained by administering the Emotional and Social Competency Inventory (ESCI), and to measure perceived leadership styles, the raters completed the Multifactor Leadership Questionnaire (MLQ-5x). A sample of 60 leaders and 240 raters was drawn from six banks. Spearman's Correlation was carried out on the data and the results indicated a positive relationship between EI scores of leaders and TL style. Further analysis indicated a positive relationship between EI and contingent reward and active MBE components of transactional leadership. On the contrary negative relationships were revealed between EI and passive MBE as well as laissez-faire leadership style, thus it was concluded that EI predicts leadership styles.