Cost leadership strategy (CL) enables organizations to earn above-average returns despite intense competition by differentiating their products and services. This study examines (CL) and the moderating influence of general environment (GE) on organizational performance (OP), specifically in Kenyan public universities. For the cross-sectional survey, two hundred (200) top and middle-level managers were purposively sampled from a population of four hundred (400) managers. The measurement model assessed reliability and validity, and bootstrapping yielded structural model path coefficients, standard deviations, and T statistics. The results showed that (CL) had a significant and positive effect on OP, whereas GE had an insignificant influence on OP. Finally, GE had an insignificant moderating influence on CL and OP. Management, policymakers, and the government can use the findings to formulate policy and competitive strategies.