The aim of this study is to analyses the association between product idea generation strategy and performance of tier III commercial banks in Kenya. The reason for conducting this study is informed by the poor performance of Tier III commercial banks in Kenya. The study was guided by theory of new product development. The study was guided by explanatory research design. The target population involved 276 employees from 20 tier III commercial banks in Kenya. The research used Cochran formula to calculate the sample size which yielded 163 respondents who were selected using stratified random sampling design. The research used structured questionnaire as instrument of data collection. Data collected was analysed using quantitative methods. Data collected was analysed using quantitative methods. The study found out that there was significant positive relationship between idea generation and organisation performance (p<0.05). The paper recommends that a broad-based idea generation strategy to be incorporated by commercial banks to raise their performance