© Pendo, Muturi, Mogwambo ISSN 2412-0294 241 http://www.ijssit.com Vol 2 Issue 3, May 2016 ISSN 2412-0294 INFLUENCE OF FINANCIAL RISK MANAGEMENT PRACTICES ON THE PERFORMANCE OF COMMERCIAL BANKS OPERATING IN MIGORI COUNTY, KENYA 1 Beryl Pendo Mauko Msc Finance, Jomo Kenyatta University of Agriculture and Technology pendoberyl@yahoo.com 2 Dr. Willy Muturi Chair of Department, Department of Economics Accounting and Finance Jomo Kenyatta University of Agriculture and Technology mmuturi2001@yahoo.com 3 Dr. Vitalis Mogwambo (Ph. D) Lecturer, Jomo Kenyatta University of Agriculture and Technology mogwambov@yahoo.com Abstract This study aimed at establishing the influence of the financial risk management practices on performance of commercial banks, the study sought to establish the effect of interest rate risk management, credit risk management, foreign exchange risk management and liquidity risk management on the financial performance of the commercial banks. The study established that financial risk management practices influenced the financial performance of commercial banks in Kenya. From the findings, the researcher recommends that all the banks should embrace the concept of credit risk management practices. This will help these banks to be able to lower the risks associated with credit in the banks. The study also recommends that for efficient and effective credit risk management systems credit policy in the banks should be reviewed regularly for example quarterly. Keywords: Commercial Banks, Financial Risk, Management Practices