Financial planning is considered as a direct input in a firm’s performance; failure to develop an effective financial plan opens up uncertainty that unduly increases the vulnerability of an enterprise to both internal and external shocks. Past studies fail to accurately link financial planning practices and performance of firms. The purpose of this study was to establish the effect of financial planning practices on the growth of SMEs in Kisumu City. The study specific objectives are: to assess the effect of sources of funds planning on the growth of SME in Kisumu City; establish effect of cash Management planning on the growth of SMEs in Kisumu City; and analyze effect of cash investment planning on growth of SMEs in Kisumu City. The theories used in this study are Trade off Theory of liquidity and Pecking Order Theory. The study adopted descriptive research design. The study target population was 497 registered SMEs by Ministry of Trade and Industrialization, Kisumu County, in the financial year 2018/2020. The study sample size was 217 SMEs. The study employed a questionnaire to collect primary data as well as secondary data which was collected from financial statements for the SMEs. The data collected was analyzed using descriptive and inferential statistics. Descriptive statistics involved use of measures of dispersion and central tendency where means and averages and regression analysis. From the findings the study recommends that; With regards to source of funds, financial institutions should come up with financial products that are tailored to meet demands by SMEs. With regards to Cash planning, SMEs need to opt for diverse Cash planning practices to complement the already exiting practices. With regards to investment planning SMEs should adopt other investment practices The research was based on effect of financial planning on growth of SMEs in Kisumu City and further research should be done on: effect of financial planning practises on growth of SMEs in other counties to accord generalization of the findings; further research should be done on other management practices as well; and further research should include other sectors like large organizations and listed firms. The government will consume the results to implement policies to improve SMEs performances, SMEs can use the findings to plan their finances, financial institutions will find the study important as it will help them in designing products that suit SMEs financial planning and the academia can use the results of this study as abasis for future study in the SMEs financial planning. Study findings reveal that sources of cash planning has significant influence on growth of SMEs.