Commercial bank mergers and acquisitions lead to improved financial performance by reduction in tax burden. The company that makes losses will not pay taxes and the taxes paid by the profit-making firm will be less if the two companies merge thus making their net profits less leading to a lower tax liability. This study sought to determine effects of M&As on the success and value of banks in Kenya. A descriptive research approach was used in this study, which focused on banks that have undergone mergers and acquisitions. Event study, three years before and one year after mergers and acquisitions, was adopted based on secondary information from NSE, CBK, but also publicized publications. Descriptive, correlation and regression methods were utilized. From the results, merger/acquisition showed a positive significant regression coefficient an indication that M&A has a positive effect on financial performance of Kenyan commercial banks. For the liquidity, the Kenyan commercial banks showed low levels of liquidity of 82%. Liquidity had a positive regression coefficient indicating that liquidity of Kenyan Commercial banks has a positive effect on their performance. The study recommends that banks get into Mergers and acquisitions for increased returns on their assets. The banks also need to raise their current assets and reduce their current liabilities which would improve their financial performance. Further research should be done based on other factors influencing financial performance, other measures of the variables, primary data and other institutions other than commercial banks.

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