Efficient key management is crucial for secure communication among smart devices in the Internet of Things (IoT). While existing security mechanisms can protect the network from various attacks, efficient key management schemes are necessary to ensure optimal network performance. This research proposes a smart key management technique that utilizes pairwise, foreign, and home keys for intra-cluster communication, communication outside the cluster, and establishment of communication, respectively. The proposed cluster-based scheme is suitable for mobile devices, as it reduces energy consumption and enhances scalability. The proposed protocol also minimizes the computational overhead incurred in the key management process by reducing the rekeying process required for nodes in different networks through the use of foreign keys. The performance of the proposed technique was evaluated in Ns 3 and it is compared with other state-of-the-art models, including TSRM and CKMT, using metrics such as energy consumption, delay, and throughput. The results showed that the proposed technique outperformed other models in terms of these metrics, highlighting its potential for enhancing the security and performance of IoT networks.