Kenya Banking system manifest in a controlled and fragmented financial system attributed to differences in regulations governing banking and non-banking financial intermediaries. However, inadequate autonomy and weak supervisory capacities has led to the number of non -performing loans increasing overtime from 22% to 27.3% of the total loans. It is not clear the extent to which this trend was linked to interest rates, hedging, non-interest income and financial performance of commercial banks. Further, past studies findings have produced mixed results where some indicated positive significant relationship between non-interest income and financial performance while other studies showed insignificant relationship. The purpose of this study was to assess the effects of interest rate, hedging, non-interest income and financial Performance of commercial banks listed at the Nairobi Securities Exchange. The study specific objectives were: to establish the effect of Central Bank Rate (CBR) on the relationship between bank commissions on loans income and financial performance of commercial banks ;to find out the effect of interbank rates on the relationship between transactions account income and financial performance of commercial banks ;to establish the effect of Repo rates on the relationship between investment income and financial performance of commercial banks ; and determine the effect of hedging on the relationship between interest rates, non -interest income and financial performance of commercial banks listed at the Nairobi Securities Exchange. The data was collected in November 2023. The study was directed by the loanable fund theory, liquidity preference theory and the time preference theory. The conceptual framework directed the relationship between the variables as conceptualized in this study. The study adopted a cross-sectional survey research design with panel data analysis approach. The study unit of analysis was the Commercial Banks listed in Nairobi Securities Exchange. According to the NSE Report (2019), a total of 11 commercial banks are listed. The study adopted a census where all the banks were considered. Secondary data which was collected from both individual banks financial statements and the Central Bank’s database using a data collection guide. Correlation analysis and regression analysis was used to explain the relationship between interest rate, non-interest income and financial performance of listed commercial banks at 95% confidence level. Findings include: results reveal that CBK rates and hedging when optimized the financial performance of commercial banks improves significantly (R = .734a, R2=.539, adjusted R2= .533, p= 0.000<.05); a strong and positive association existed between the Interbank Rate-Hedging, Transaction Account Income and financial Performance (R = .849a, R2=.720, adjusted R2=. 717, F = 215.252, p= 0.000<.05); a strong and positive association existed between repo rate-hedging, investment income and financial performance of commercial banks (R = .776a, R2=.602, adjusted R2=.600, F = 99.639, p= 0.000<.05). Further a strong and positive association existed between interest rates, hedging, non-interest income and financial performance of commercial banks. Therefore, variation in financial performance of banks can be explained up to 89.8% by interest rates, hedging, non-interest income interaction. These variables can be relied up 88.9% in the precise prediction of financial performance of commercial banks listed at NSE (R = .947a, R2 = 0.898, adjusted R2 = 0.889, p .000< .05, F = 109.734). The study recommends that commercial banks should maximize use of interest rates, non-interest incomes and hedging to maximize their financial performance. The findings of this study are of value to various parties which include: the government and other policy makers and regulators, the management of commercial banks and other financial institutions, investors and the existing literature.