Collective bargaining agreements (CBA) are basic for any organization development and the nation’s monetary advancement. Industrial unrests have been known to create disturbances at the work place and sometimes affect the entire operations thereby suppressing or stopping productivity. The industrial actions seem unending since most of their solutions are temporary. CBA are known to be useful in minimizing or ending industrial unrests. The study adopted descriptive survey since it sought to ascertain respondent’s perceptions on the determinants of collective bargaining agreement in a structured manner. The objective populace of this investigation incorporated each of the 187 state companies in Kenya as of 27th April 2015. The unit of investigation was all the State Corporations in Kenya while the unit of perception was the Heads of Human Resources in every enterprise. The investigation utilized an example of 95 state organizations and gathered essential information utilizing a self-managed survey. The data was analysed using descriptive statistics comprising of mean, standard deviations, frequency distribution, percentages, factor analysis, correlation analysis as well as regression analysis. The study established that economic factors had a significant and positive influence on the performance of state corporations in Kenya. The study concluded that as a result of economic factors, performance of the corporations was affected. The study recommended that organizational leaders should embrace employee involvement and lead by example to promote employee performance.