Despite the rapid shift in adopting e-banking services over the last decade, the effect of e-banking on bank performance is still being debated. The purpose of this study was to examine the effect of electronic banking on performance of commercial banks in Mombasa County, Kenya. Drawing on the positivist research philosophy, the study utilized the non-experimental quantitative research methodology. A correlational, cross-sectional survey research design was employed to test the formulated research hypotheses. The target population consisted branch managers and operations managers of the 98 branches of the 39 commercial banks in Mombasa County, Kenya. A cross-sectional survey-based approach was used to collect primary data utilizing a self-administered structured survey questionnaire. The collected data was processed and entered into the statistical package for social sciences (SPSS) version 26 to create a data sheet that was used for data analysis. The data was analyzed utilizing descriptive statistics and inferential statistics. The Pearson's correlation results indicated that automated teller machine banking, mobile banking, internet banking and smart card banking capabilities had positive and significant relationship with performance of commercial banks in Mombasa County, Kenya. The regression results showed that automated teller machine banking, mobile banking, internet banking and smart card banking had a positive and significant effect on performance of commercial banks in Mombasa County, Kenya. However, the regression results indicated that mobile banking had a negative and significant effect performance of commercial banks in Mombasa County, Kenya. The conclusion was that electronic banking significantly predict the performance of commercial banks in Mombasa County, Kenya. The study provides important managerial recommendations, policy recommendations and areas for future research. It is imperative for the managers to develop electronic banking to foster the performance of commercial banks in Mombasa County, Kenya. Policy makers should consider initiating policy review to encourage stakeholders to develop electronic banking to foster the performance of commercial banks in Mombasa County, Kenya. Future researchers should consider examining the effect of electronic banking on performance of commercial banks in other regions or contexts.