Since independence, Kenya’s banking sector has continued to grow particularly in regard to inclusiveness, efficiency, and stability. However, in the recent past, the sector has witnessed a number of challenges manifesting in some commercial banks posting losses while others collapsing. Organizational alignment as an important factor can explain to a great extent the growth and survival or failure of the organizations in a competitive environment like the banking sector. The present study assessed the relationship between organizational alignment and growth of commercial banks in Nakuru town, Kenya. Specifically, the study examined the relationship between leadership alignment, organizational culture alignment, and organizational structure alignment on one hand and growth of commercial banks on the other. The study was guided by four theories which included contingency theory, trait theory, organizational theory, and Greiner’s growth model. The study employed a cross-sectional survey and used census data. All the managers in charge of the 35 branches of commercial banks currently operating in Nakuru town comprised the target population. This study used a structured questionnaire to collect data from the respondents. The research questionnaire was subjected to a pilot test in order to determine its validity and reliability. The Statistical Package for Social Sciences computer software was used for data processing and analysis. Both descriptive and inferential statistics were used in the analysis. Descriptive statistics took the form of frequencies, percentages, and standard deviations. Inferential statistics took the form of correlation analysis and multiple regression analysis. The results of the analyses were presented in tables. The relationship between leadership alignment and organizational growth was found to be positive, weak and not significant (r = 0.034; p > 0.05). The relationship between organizational culture alignment and organizational growth was revealed to be positive, weak and not significant (r = 0.156; p > 0.05). The study found that the relationship between organizational structure alignment and organizational growth in commercial banks was positive, moderately strong and significant (r = 0.494; p < 0.05).
