The manufacturing sector is crucial for attaining a robust economy. However, in Kenya, the sector’s contribution to the economy has stagnated at 10% of the gross domestic product (GDP). Financing structure is imperative to optimize a company’s profitability and hence improving its competitiveness. This study applied Dynamic Unbalanced Panel analysis techniques using Secondary data for 10-year period (2010 - 2019) with the study population comprising of 9 listed firms. Quantitative secondary data was collected from the firms’ financial statements by use of a document analysis guide. Focus was on retained earnings financing moderated by economic growth rate and earnings volatility on performance which was proxied by Tobin’s Q. Pecking order theory guided the study. Longitudinal research design was used as it is appropriate when dealing with panel data. Pearson correlation was used to show the strength and direction of association among the study variables. Retention ratio (RR) had a moderate positive correlation (r = 0.3197) with Tobin Q and a strong positive correlation (r =0.5997) Ln EVA respectively. The regression coefficient was also positive and significant. The study recommended that Retained earnings improve performance hence should be applied. Future studies can consider a static panel analysis.