ABSTRACT. This study investigated the effects of merger restructuring on the financial performance of commercial banks in Kenya. The research compared the pre-merger and post merger financial performance of twenty Kenyan banks that had merged between 1993 and 2000. The results indicate that the financial performance ratios that have legal implications (capital adequacy and solvency ratios) improved after the merger. However profitability ratios indicate that the majority of the merged banks reported a decline in financial performance.