This study examines the Influence of changes in equity on financial performance of listed commercial banks in Nairobi securities exchange. The study was grounded in stakeholder theory which collectively explain the role of financial reporting in enhancing transparency, accountability and decision making A descriptive research design was adopted, using secondary data collected from audited financial statements of listed commercial banks in Nairobi securities exchange over a five-year period from 2021 to 2025.A sample of eleven listed banks were maintained as the target population since census method was adopted. Data analysis involved both descriptive statistics by the use of mean, standard deviation, minimum and maximum. The inferential statistics techniques, including correlation and Panel data model to establish relationships between changes in equity and financial performance of listed firms in the NSE. Empirical evidence from prior studies indicated that accurate and comprehensive statement of changes in equity was inevitable. The study found out that, statement of changes in equity had a positive and significant effect financial performance of listed commercial banks in the NSE in Kenya. Consequently, a change in statement of changes in equity led to a significant change in financialperformance of listed commercial banks in the NSE in Kenya.The study concluded that, a change in statement of changes in equity led to a change in financialperformance of listed commercial banks in the NSE in Kenya. Thus, unit increase in statement of changes in equity led to a significant increase in financial performance of listed banks. The study recommended that listed commercial banks in the NSE should decrease their debt costs, increase their equity, retained earnings, pay dividends adequately. This would make them increase their statement of changes in equity and hence, financial performance.