CBK should strengthen existing credit rating policies that would enhance performance of commercial banks. Therefore, the study recommended that credit rating information should entail on-time repayment of loan and late repayment information with emphasis on why and how so as to reflect their default characteristics. Central Bank of Kenya Credit rating policies were found to have significant moderating influence on the relationship between customer loan repayment record and financial performance. Therefore, credit rating information null hypotheses were rejected as credit rating information influence financial performance of commercial banks in Kenya. Results show that the relationship between customer loan repayment record, existing loan balance, previous credit period and financial performance of commercial banks was found to be linear, positive and significant. It was presented in tables, graphs, regression model, variables compared and conclusions drawn. Descriptive analysis included frequencies, Mean, Standard deviation, maximum, minimum and percentage while inferential analysis involved correlation analysis and multiple linear regression analysis. Descriptive analysis summarized data in form of central tendency as well as dispersion and inferential analysis was used to test hypothesis at a significance level of 0.05. Quantitative data was analyzed using descriptive and inferential statistics. Data was entered in Ms Excel and analyzed using SPSS version 21. Questionnaires assessing various issues were given to 83 bank employees in Busia County. The researcher used purposive sampling to identify bank employees in this case credit and finance department and thereafter simple random sampling was used to select 83 respondents. The target population comprised of 104 employees from credit and finance departments of commercial banks located in Busia County. The study population comprised of 43 Kenyan commercial banks. The researcher adopted a descriptive study. The specific objectives were to investigate influence of customer loan repayment record on financial performance, and to determine the influence of Central Bank of Kenya policies on credit rating as an intervening variable on financial performance of commercial banks in Kenya. The purpose of this study was to investigate customer loan repayment record and financial performance of commercial banks in Kenya. The Kenyan economy is grappling with the problem of limited access to credit especially low resource citizens. Commercial banks in Kenya are faced with the inherent problem of loan defaulting. This information reveals the credit worthiness of prospective borrowers and enables banks to estimate the credit risks that they are exposed to. Credit rating information has a significant effect on the performance of commercial banks.
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