Chelangat, Annah2025-07-142025-07-142023-11https://ir-library.ku.ac.ke/handle/123456789/30700Building internal capacity, condueting energy audits, (raining energy management teams, facilitation of new technology in tea factories has been some of the sgveral interventions made to decrease the cost of production and ensure more money in the pockets of tea growers, However, a decline in tea prices, bonuses and lr.lcrcas‘c in cost of production proven to be a challenge. Therefore, this study sought to investigate the effect of cost management strategies on the financial performance of Kapkoros Tea Factory in Bomet County, Kenya. The specific objectives of the study were to examine the effect of inventory cost management, labor cost management and overhead cost management on the financial performance of Kapkoros Tea Factory in Bomet Coupty, Kenya. The study was guided by the balance Scorecard model, theory of constraints population and lean inventory theory. The study adopted descriptive research design. The target respondents was Kapkoros Tea Factory in Bomet County, Kenya. The total number of was 350 respondents who were employees in the marketing, production, personnel and finance departments of the factory. Respondents in this study were management found that inventory have cost management, labor cost management and indirect cost Capukoros tea factories, a significant positive impact on the financial performance of that inventory Regarding inventory cost management, the study concluded optimal inventory cost to management increases accuracy by ensuring that factories have fulfill orders. When it comes to managing labor costs, the studyenThesis