The university education sector is becoming very competitive due to changes in the business environment. In order to be successful strategic decisions are a key to improving performance of universities. The purpose of this study is to establish the effects of strategic decisions on performance of universities in Kenya. Systems theory provided a theoretical basis for the study. The study adopted explanatory -cross sectional survey research design. Respondents were selected using stratified and simple random sampling techniques. A questionnaire was used to collect primary data.