Commercial banks’ working environment is the most highly regulated environment around the globe and this explains why banking regulations continually attract theoretical scrutiny. In Kenya, the Central bank of Kenya sets the rules and the regulations that every bank is supposed to operate by. Such regulations and guidelines are important as they are meant to protect the interest of depositors, creditors and investors as well as promoting integrity in financial markets. Commercial banks in Kenya have faced challenges related to performance that include decline in profits, being placed under receivership while at the same time registering high number of nonperforming loans. This has happened in the wake of revision of guidelines and regulations under CBK Act (Chapter 491, Kenyan law). This study therefore sought to investigate the effect of credit risk management regulations on profitability of commercial banks listed by Nairobi Securities Exchange. This research was directed by the theory of balanced portfolio. This research applied a descriptive research design. Population of interest were managers at the three levels of management; risk and compliance, credit and finance department in all 11 registered commercial banks which are listed in the NSE. This research used secondary data and primary data. A trial study was done to enhance reliability and validity of the research instrument. Both qualitative and quantitative data was produced by the research. The researcher further used multiple regression analysis Results to show that credit risk management practices play an important role in ensuring smooth banking operation in that sufficient capital helped in cushioning risk such as default in loan repayment. The study concludes that credit risk management practices had a positive significant impact on banks profitability, for instance, proper information evaluation before approving loans to the customers is a good credit risk management system that eventually enhances banks profitability. The study recommends that the commercial banks come up with strong credit risk management procedures. Such procedures should entail creditworthiness, investment viability appraisals and credit insurance measures