This study's goal was to determine how outsourcing strategy affected Kenyan insurance firms' performance. Core competence theory and agency theory served as the study's foundations. A total of 56 respondents were sampled for the cross-sectional descriptive survey that was utilized for the research. Structured questionnaires were used to gather primary data, which was then coded and entered into the SPSS analytic program. A sample of 56 people received the surveys, with an overall response rate of 85.70%. It was determined through descriptive statistical analysis that the measures of strategic outsourcing and performance were adequate predictors of the two variables. The result of the regression analysis revealed 87% of the variance in organizational performance was ascribed to external variables, whereas 13% of the variation was related to the outsourcing approach. F (1, 16) = 3.551, p > 0.05, which indicates a connection that is not statistically significant, was the result of the ANOVA study. The overall conclusion is that company performance is not significantly predicted by outsourcing strategy. In accordance with further examination of the regression coefficients, performance changed by 0.46 for every unit change in outsourcing approach. The results indicated that an incremental change in outsourcing approach resulted in a corresponding change in performance, but the total effect was not statistically significant. According to the study's results, outsourcing is not widely used by companies in Kenya's insurance sector as a strategic means of enhancing organizational performance. However, according to some research, strategic outsourcing enhances a company's success. As a result, this study sheds light on the outsourcing strategy relationship with performance in the context of Kenyan insurance sector, thus managers need to take an educated decision when adopting an outsourcing strategy to improve the performance of their organization.

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