Service recovery strategy is achieved when customers derive value and satisfaction through the quality of service offered. When a service exceeds the previous expectations of a customer on that particular service then service excellence has taken place. Majority of firms excel in customer interactions but fails to pay sufficient attention on service recovery strategies. In Kenya, commercial banks just like other business organizations have spent a lot of resources to adopt various marketing activities to attract customer. The main aim of this research was to assess the impact that service recovery approaches have on Banks in Kenya. This study was based on two theories, Porter’s competitive advantage theory and the resource based theory. The target population in this research comprised of 44 commercial banks in Kenya. The target respondents were senior managers in Commercial bank. Analysis was done using multiple linear regression and correlation analysis. It indicated that Banks in Kenya, for a great extent, improved their personalized services and responsiveness while at a moderate extent banks have improved their reliability, customer focus and communication. Findings established the existence of a that positive linkage amid service recovery strategies and competitive advantage. It concludes that service recovery strategies positively enhance organization competitiveness and also the study concludes that banks ought to inspire all players in the banking sector to apply their known core skills and competencies to instill expertise in their day to day activities. The recommends that the leadership of banks should be committed to service recovery strategies. Top leadership should allocate and provide more resources, both financial and human resources, to support strategies.

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