The purpose of the study was to evaluate the influence of resource allocation on the
organizational performance of commercial banks in Meru County, Kenya. The study used a
descriptive design targeting 19 banks in Meru County, involving 19 managers and 91 staff.
Data were collected via questionnaires and interviews, analyzed using SPSS and thematic
methods. Most respondents (87%) reported ICT investment improved communication,
efficiency, and reduced resource waste. Financial accountability (84%) also reduced waste, but
challenges like poor training, politics, and resistance affected risk allocation. A significant
correlation (r = 0.379, p < 0.001) was found between resource allocation and performance
outcomes. The study recommends that senior management should ensure that there is
impartiality in organizational politics to minimize its interference with even resource
distribution among the departments. Furthermore, the study suggests that there is a need for
employee involvement measures to minimize the resistance level experienced within the
banking departments.
