Insurance companies in Kenya have in the last decade experienced several challenges including low penetration, increased competition from existing and new players, informed customers, changes in regulation on capital requirements and split of composite companies. These challenges have necessitated managers of the firms to adopt change management practices to mitigate the threats and explore the opportunities in the operating environment. Some of the changes were in response to changes in regulation to ensure compliance, while the rest were in response to changing consumer needs to ensure customer satisfaction and improve operations. The study had two goals to establish if the firms had adopted strategic change management practices in the administration of changes and determination of their impact on the companies’ performance. The study adopted a census approach where information was gathered using structured questionnaires. The study noted that Kenyan insurance firms utilized strategic change management practices during implementation of change. It also further established that adopting these practices had a positive effect on performance of the insurance companies in Kenya as constituted by the balanced scorecard. The study concludes that effective communication created motivation to change, was key in minimizing resistance to change and had a positive influence on performance. Visible support from management ensured that adequate resources were available to support the change, and had a positive impact on results. Additionally, the human resource plan provided the organizations with the required human capital to support the change implementation and after change needs, which also influenced performance positively. The study recommends adoption of these practices to improve firms’ performance.

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