With the rapid changes in automation and technologies and advent of COVID-19, commercial banks have been forced to speed up the implementation of digital strategies as a way of attaining competitive advantage. The objective of this study was to establish the challenges of implementation of digitization strategies and competitive advantage by international Tier 1 commercial banks in Kenya. This research was based on two theories; the national competitive advantage theory and the chaos theory of management. This study applied a case study design and used an interview guide to collect qualitative data from the nine Tier 1 international commercial banks in Kenya. The target respondents in the 9 Tier 1 commercial banks were the Chief Information System Directors. This study applied the content analysis method to analyze the collected qualitative data. The study findings determined that in most of the international tier 1 commercial banks, formulation and implementation of digital strategies was an interdepartmental process that incorporated two or more departments. The study also determined that all the banks had digital strategies in place prior to COVID-19 pandemic's outbreak in the nation, but had to enhance the scope and accelerate implementation due to COVID-19. Findings indicated that the international tier 1 commercial banks implemented various digital strategies during the COVID-19 pandemic which included digitization of more banking processes and services, partnerships with FinTechs and Telecoms, introduction of digital signatures and workflow automation. Besides, findings indicated that other digital strategies executed included allowing employees to work remotely, upgrading their systems, expanding online banking services, improving aesthetics of digital platforms and upgrading security over systems and increasing allocation of resources. The study findings determined that the commercial banks faced a variety of challenges that included cyber security risks, wastage of resources and time in remote working, regulatory challenges, internet access, increase in emergency investments and resistance to change. The study determined that the digital strategies that were executed by the commercial banks were critical to their ability to achieve and maintain competitive advantage. Based on the findings and conclusions, the study leads to the following recommendations. To begin with, the study recommends that digital strategy formulation and implementation should be an interdepartmental effort and process. Incorporating various departments in the formulation and implementation of digital strategy, it is recommended that commercial banks should have the agility in their culture, strategies and processes so that they can cope with chaos such as those that were brought by the COVID-19 pandemic. Besides, top leadership and policy makers should work together in dealing with the challenges of executing digital strategies. The top management should ensure that there are adequate policies and resources to cope with the challenges such as cyber-security, internal efficiency, remote working and connectivity. Besides, it is recommended that CBK should expedite the review and approval of new digital products and services by the commercial banks during the COVID-19 pandemic and in the future.

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