The study was about contribution of banana production on house hold income generation among Smallholder farmers in Kitagata town council, Sheema District. The specific objectives included to; examine the socio-economic characteristics of smallholder banana farmers, establish innovative strategies to improve banana production and income among smallholder banana farmers and identify the factors affecting banana production and income among smallholder banana farmers. The study adopted a cross-sectional survey that applied both quantitative and qualitative approaches for data collection. Data was captured from a sample of 302 respondents using both questionnaire and interviews. Data was analyzed using SPSS software version 22.0 to generate both descriptive and inferential statistics. The study concluded that there were socio-economic characteristics of farmers which also affected banana production. Such characteristics included; age, marital status, level of education land size and gender. The study also concluded that there were innovative strategies to improve banana production and income among smallholder banana farmers in Kitagata town council, Sheema district. These included; Integrated Pest Management, use of hybrid varieties, Irrigation, mulching, climate-Smart Agriculture through use of drought resistant varieties, agro-forestry, use of fertilizer application and organic manure to replenish soil fertility. The study finally concluded that there were factors affecting banana production and income among smallholder banana farmers. Such as; access to extension and advisory services which had a significant effect on production and smallholder farmer’s income at (p=.004), access to financial services was a strong predictor of production improvement and farmer’s income at (p=.002), a positive and a significant relationship were observed between availability of quality farm inputs and banana production (at p=.023), The study further discovered that ready market was a strong predictor of production and small holder farmer’s income at (p=.003) and Lastly, a positive and a significant relationship were observed between banana varieties grown and banana production as well as income at (p=.005). The study recommends that the government, NGOs, Ministry of Agriculture, Animal, Industry and Fisheries in collaboration be established with the aim of implementing innovative agricultural strategies geared towards banana productivity increments, there is also a need for the government to provide enough facilities to extension agents that will help them facilitate enhanced training to farmers and inform them of new techniques in farming, there is a need for the government to provide some production inputs at subsidized cost.