Good corporate governance has been argued to be a key determinant of organizations performance. This study sought to determine the influence of corporate governance on the performance of financial institutions in Kenya. Using a structured questionnaire, data were obtained from 108 financial institutions comprising banks, insurance companies, Savings and Credit Cooperative Societies (SACCOs) and Micro-Finance Institutions (MFIs). Data was analyzed using regression analysis; the results indicate that corporate governance has a statistically significant influence on the performance of financial institutions. Board skills and board committees were found to be important predictors of the firms’ performance. However, whereas board skills had a positive influence, board committees were found to... have a negative influence on performance. Consequently, implications to theory, policy and managerial practice especially on board member’s appointment and attributes to be considered. The study concludes that possession of requisite skills is one of the most important considerations in the appointment of board members.