The study examined the relationship between credit risk management and financial performance of commercial banks in South Sudan with Kenya commercial bank limited as the case study. It was guided by three objectives; to find out the role of credit risk identification on financial performance of Kenya Commercial Bank South Sudan Limited, to examine the role of credit risk assessment on financial performance of Kenya Commercial Bank South Sudan Limited and to determine the role of credit risk control on financial performance of Kenya Commercial Bank South Sudan Limited. The study adopted a phenomenological design divided in section of research approach, research strategy, research duration and the research classification. The study population was 110 and a sample size of 86 respondents of which all participated. Results showed that the correlation coefficient was (0.680(**); Sig. 0.000which indicated a significant relationship between credit risk identification on financial performance; a significant relationship between credit risk assessment on financial performancewas (0.614(**); Sig. 0.000 and a significant relationship between credit risk assessment on financial performancewas (0.573(**); Sig. 0.000). Overall, 66% of financial performance of KCB is explained bycredit risk management in form of credit risk identification,credit risk assessment and credit risk control. Results revealed that the bank is in close contact with the CRB for assistance regarding lending decisions to borrowers, subsequent approvals on loans and their appraisals are performed on the basis of the credit history, the bank dictates the loan size limits that one qualifies for on the basis of their financial history, KCB usually make a thorough assessment of the key risks facing the client and whether the client has some strategies put in place to mitigate these risks, the committee and the manager of KCB receive and evaluate the loan performance on an ongoing basis, Credit rationing influences the amount of loan approved visa vis the loan applied and KCB has a credit limit beyond which the bank cannot grant credit to the client in order to control risk of default. The study concluded that Credit risk identification significantly affects loan performance in commercial banks. Commercial banks that periodically analyze such situations reduce the probability of recovering the loans and their interests have performing loans. Commercial banks in South Sudan which assess the cash flow statements, financial records, and the mitigation strategies of their clients against risks have performing loans. The study recommends that commercial banks should put in place stringent credit risk controls that are likely to register superior loan performance. Strict credit controls are enforced by pledging collateral equal to the loan amount, limiting maximum loans available to customers, ensuring borrowers' ability to repay, and allowing commercial banks to perform appropriate credit risk assessments. It is done to record excellent lending performance. Banks should take the time to analyze customers' cash flow statements and other financial records to fully assess the key risks facing their customers and the strategies they have adopted to mitigate those risks. Commercial banks should ensure credit risk monitoring on how customers use loans that do not deviate from the agreed objectives for receiving loans

A Dissertation Submitted to the School of Post Graduate Studies and Research in Partial Fulfillment of the Requirements for the Award of the Degree of Masters of Business Administration of Nkumba University