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This research highlights challenges facing the tyre industry on enhancing customer loyalty. It is a case study of Treadsetters Tyres in Kisumu. This research is meant to answer the following research questions; does the threat of new entrants affect customer loyalty; does the threat of substitutes affect customer loyalty; does bargaining power of suppliers and bargaining power of customers affect customer loyalty and Does Competitive Rivalry among the existing firms, affect customer loyalty? Perceived as the common challenges that affect customer loyalty, three theories guide this research: Dissonance Theory which points that consumers make some kind of cognitive comparison between expectations about the product and the perceived product performance, Contrast Theory that presents an alternative view of the consumer post-usage evaluation process and Assimilation-contrast Theory that was introduced by Anderson (1973) in the context of post-exposure product performance based on Sherif and Hovland¿s (1961) discussion of assimilation and contrast effect. Literature done by different researchers helped this research make a strong background and establish a knowledge gap.