This paper examines the effects of fiscal policy and the profitability of commercial banks. This study is being carried out to analyze the impact of government expenditure as a fiscal policy on the on commercial banks in Kenya and in specific Kenya Commercial Banks (KCB). This follows the Keynesian economic theory that posits that the government can use fiscal policy to achieve economic objectives of price stability, full employment and economic growth which also affects the profitability of commercial banks. The work adopted a simple regression model. The target population was the Kenya Commercial Bank (KCB). The profitability of commercial banks in Kenya were regressed against the fiscal policy instrument; government expenditure over ten year period from 2006 to 2015. Data was analyzed by simple regression of the variables. The study concluded that profitability of commercial banks in Kenya is largely affected by the fiscal policies that the Economy applies to stabilize other macroeconomic factors. Macroeconomic stability should remain top policy for the government to ensure that the banking sector remains afloat in order to sustain the economy