In Kenya, the number of banks has grown drastically especially from the 1980s. This has resulted to this institution to rethink and strategize on how to survive in this competitive market. These changing dynamics has forced players at all levels to re-engineer their business organizations. The institutions operations and functions which its intent is to meet emerging challenges within the banking institution call for innovative banking and support service practices through use of technology strategies. This is to enable banking institutions to incorporate strategic innovative service delivery schemes. The objective of this paper was to analysis technological innovation on organization in creating competitive advantage in the Kenya’s banking industry and to uncover how technology can help organizations to effect innovative and strategic changes in the organization. The research was undertaken by way of a survey of all banks in Kenya to identify if and how they use IT to support their corporate objectives. The research was not intended to necessarily compare the use of IT against the financial performance of the organizations.