Abstract: Financial performance is a crucial aspect for investment firms as it reflects their overall stability and communicates their financial well-being to investors. Some investment firms in Kenya are currently experiencing a decline in financial performance. This study focused on four dimensions of financial risk management (interest rate risk, exchange rate risk, inflation rate risk, and liquidity risk) to examine the effectiveness of risk management strategies in enhancing financial performance. The study equally assessed the moderating effect of firm size. Primary and secondary data sources were utilized, with a sample size of 40 respondents selected from the five listed investment firms.