ABSTRACT:- Capital structure management are critical aspects in all manufacturing firms that play a big role in determining the overall stability and ensuring available funds are effectively used. Despite having implemented pertinent financial imperatives such as capital structure management, the growth of manufacturing sector in Gross domestic product fell to 2.7 percent in 2022 from 7.3 percent the year before according to the Kenya National Bureau of Statistics 2023 Economic Survey. The researches conducted on manufacturing companies have concentrated on the individual effect of the financial factors and not the combined effect. The objective of the study was to establish the effect of capital structure management on performance of manufacturing firms on Nairobi securities exchange. Pecking order theory guided the study. The study’s target population was nine listed manufacturing firms in Nairobi Securities Exchange. Correlational research design and multiple regression model were used. Census survey was utilized to study all the nine manufacturing firms. Data processing and analysis was computed through use of STATA. Descriptive statistics such as mean, standard deviation were generated. Inferential statistics comprised of multiple linear regression analysis. Data was presented using tables, charts and graphs. Capital structure management showed a negative correlation coefficient of -0.5312 on firms’ performance. Correlation coefficient of capital structure management, was -0.3622. The study results of capital structure management and performance of manufacturing firms indicated an overall R square of 0.4817 with ROE and 0.4574 with EPS. The study is valuable to the government, policymakers and managers in manufacturing firms to adopt to the financial imperatives in order to improve performance.