The majority of this work in SHRM adopts the resource-base view perspective which tends to ignore contextual variables,particularly competitive strategies,which influence organizational performance. The scarcities of such studies showing association between SHRM practices and organizational performance and also the mediating role of competitive strategies in the Kenyan context make it important to further explore the critical role of SHRM. As the role of corporate organizations continue to increase in importance in Kenya, they continue facing the challenges of improving quality and improving people skills, managing workforce diversity, responding to greater globalization and stimulating innovation and change. This paper seeks to determine the influence of SHRM on organizational performance, and establish the moderating role of competitive strategies on SHRM-performance in Kenya as firms must increase their accesses to markets and knowledge by reading correctly changes in external market.