Purpose: The general objective of this research was to investigate the effects of lending on the financial performance of commercial banks listed at the Nairobi Stock Exchange in Kenya. The specific objectives in this study was to determine how check-off lending, group lending, collateral lending and mobile lending affects the financial performance of commercial banks in Kenya. The study was anchored on Merton’s Default Risk Theory, Financial Intermediation Theory, Stakeholder’s Theory and Task-Technology-fit Theory (TTF). Methodology: A descriptive survey research design was employed in the study with the target population comprising of 12 commercial banks listed in Nairobi Securities Exchange. The unit of observation comprised of employees in Credit and Lending Department in the selected commercial banks. Two employees from each department were randomly selected and involved in the study. A total of 48 employees were targeted in the study. This study utilize both primary and secondary data.  Primary data was gathered through a five point likert scale questionnaire administered to the unit of observation of the study. Secondary data was collected from audited reports and CBK financial reports for the period between 2017 and 2021. Both descriptive and inferential statistics were utilized in analyzing the data collected. Descriptive statistics comprised of frequency distributions and measures of central tendency (mean and standard deviation). Inferential statistics were used to examine the casual relationships between lending and the banks financial performance. The statistics were generated through SPSS. Findings: The results of the study were displayed in form of tables and figures. The study established that check-off lending, group lending, collateral lending, and mobile lending positively and significantly affects financial performance of commercial. The results bear the implications that increasing the each of the independent variable with one unit results to an increase in the levels of financial performance with the respective beta value. Unique contribution to theory, practice and policy: The study recommended that NSE listed commercial banks should enhance the lending practices since this practice results in enhanced performance levels. The study recommends further research on non- lending indicators that affect financial performance of the listed commercial banks and which possibly accounts for the remaining percentage of 32.9%.

ABSTRACT Purpose: This study aimed at determining how check-off lending, group lending, collateral lending and mobile lending affects the financial performance of commercial banks in Kenya. A descriptive survey research design was employed in the study with the target population comprising of 12 commercial banks listed in Nairobi Securities Exchange. Methodology: A total of 48 employees in the credit and lending department in the selected commercial bank formed the target respondents and with the study utilizing both primary and secondary data.  Primary data was gathered through five point Likert scale questionnaires while secondary data was collected from audited reports and CBK financial reports for the period between 2017 and 2021. Both descriptive and inferential statistics were utilized in analyzing the data collected. SPSS and multi-linear regression model were used to analyze the data and which was presented by use of tables and figures. Findings: The study established that check-off lending, group lending, collateral lending and mobile lending positively and significantly affects financial performance of commercial. The results bear the implications that increasing the any of the independent variable with one unit results to an increase in the levels of financial performance with the respective beta value. Unique contribution to theory, practice and policy: The study provides that commercial banks’ performance can be enhanced through various lending practices that formed the independent variables of this study and hence resonates with commercial banks to take lending seriously as it is a cash cow to their products’ offering.