Abstract: Financial institutions have been in the process of significant transformation. Despite this transformation, even though there’s a richness of information on the nature and scope of internet banking, there is a scarcity of evidence about the impact of internet banking activities among banks that have adopted it compared to those that have not done so. The research aimed at determining the effects of internet-banking on financial performance of financial institutions in Kenya. The study adopted a descriptive survey design. The target population comprised of 31 employees of KCB, Treasury Square in Mombasa Kenya. Data collection was done through the use of questionnaires and analyzed using statistical tool. From the study, it was revealed that the impact of ICT adoption on the performance of banking sector mainly refers to time reductions and quality improvements, rather than cost reductions as reported by many authors.