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The study aimed at investigating the effect of information technology capability on firm performance in Kenya using a case of Ibis hotels. The study employed primary data collected using questionnaires and using a sample size of 50 respondents to achieve its objectives. The response rate was 74%. The data was analyzed using descriptive and inferential analysis methods. The study serves to inform business managers that firms should do much more than merely invest in IT, they should identify ways to create a firm-wide IT capability by creating IT relationship capability, IT human resource capability and an IT infrastructure capability.