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Balanced Scorecard has turned out to be the custom in the current world. This has been necessitated by poor performance of the enterprises both private and public and therefore becoming load both financially and administratively. Tax payers have come out honestly demanding the value for their money i.e. efficient, effective and ethical delivery of service to the citizens. Also due to high competitions experienced, there is need for the organizations to manage their performance and let individual performance to be accountable. In Kenyan banks, reforms have been embraced partly through signing of Balanced Scorecard as a tool of performance management. It has not been easy to implement this tool; therefore this research paper focused on the factors affecting implementation of Balanced Scorecard as a tool of performance management in Kenyan banks, with a special focus on commercial banks in Meru town. It tried to find out whether the process of implementation is not followed well andwhether there are other variables which the banks needs to check in order to have smooth implementation.