The study explored the relationship between leadership styles and performance, using a case of Banana Wine Producing Cooperatives in Kabarole District. Its aim wasto discover the influence of transformational and transactional leadership styles on performance of Banana Wine Producing Co-operatives in Kabarole District. The research used a correlational and analytical research design — using both questionnaires and interviews —to collect data from a sample that was purposively sampled. The data revealed that there was indeed a strong relationship between transformational leadership and performance of wine producing cooperatives, given the correlation coefficient value of r= 0.904 at significance level p= 0.05. With the Adjusted R square value of 0.814, the study concluded that transformational leadership contributed 81.4% tothe performanceof the cooperatives.

The study revealed that there was a strong positive relationship between transactional leadership and performance with a correlation coefficient value of r=0.724 at significance level p=0.05.Given the Adjusted R squareof 0.517, it was concluded that transactional leadership contributed 51.7% tothe performance of these cooperatives within Kabarole District. The study still revealed a strong positive relationship between leadership styles and performance with a correlation coefficientvalue of r=.918 at significance level p=0.05. This means that since Adjusted R square was 0.840, it can be assumed that a leadership style contributed 84% tothe performance of Banana Wine Producing Cooperatives in Kabarole district. The study recommends that the leadership of these cooperatives 27 should be taken as a critical aspect of the management in order to ensure high performance of the institutions.