Purpose of this study was to determine the effect of cost leadership strategyon performance of selected car rental business in Nairobi City County. Thisstudy was a cross-sectional descriptive study design where purposivesampling technique was used to select fifteen (15) car rental business inNairobi City County. Stratified and simple random sampling technique wasemployed in recruiting three categories of respondents. The three category ofstaff included, top level, middle level and bottom level management.Structured questionnaires were used to collect primary data which was thenanalyzed. Both descriptive and inferential statistics was used. The findings ofthe study revealed that cost leadership strategy was not statisticallysignificant in affecting the performance of Car hire firms in Nairobi CityCounty. Many of the car hire business in Nairobi City County charged sameas their competitor. Cost leadership strategy affected performance of carrental business in Nairobi City to a very large extend. This studyrecommends the need to evaluate other competitive strategies onperformance of car rental business in Nairobi City. This study findingsimplies that sustaining a cost leadership strategy an entrepreneur shouldbecome aware of the competitors offer and consider developing customerintimacy and focus on a narrow target market
