Monitoring denotes the practice of measuring the quality of the internal control structure over time in order to evaluate the quality and the efficacy of the system’s performance over time. By monitoring, the organization gets guarantee that the findings of audits and other evaluations are promptly determined. This facilitates an organization to decide whether or not its policies and procedures designed and implemented by management are being carried out efficiently by employees. The study used descriptive research with a target population comprised of the 187 public organizations in Kenya. Simple random sampling method was used to sample 56 per cent respondents in the selected corporations. The study used a questionnaire to collect data from the respondents and secondary data was collected from published material, annual reports, and published data. Data collected was analyzed by the use of descriptive statistics which includes percentages, means, standard deviations and frequencies.The study found that monitoring and evaluation affect the financial performance of the state corporations to a moderate extent. It was concluded that monitoring and evaluation is essential in assessing the quality of performance. The study recommended that M&E plans should be developed with all stakeholders so as to enhance ownership and compliance and improve accountability and ensure proper resource utilization in State Corporation.