Abdihakim, Ibrahim Ibrahim2025-07-232025-07-232025-04https://ir-library.ku.ac.ke/handle/123456789/30741A Research Project Submitted to the School of Law, Arts and Social Sciences in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Public Policy and Administration of Kenyatta University, April, 2025 Supervisors; 1.David MinjaPrevious studies in the field of reward management practices concentrated on private sector firms and educational institutions. A significant number of them also happened to have been conducted outside Kenya and in particular, outside the water sector. The study reviewed presented a methodological gap on the need to use primary data and use a semi-structured questionnaire. The context on employee performance was also different from this study context on organizational performance. The study therefore, endeavored to fill this empirical knowledge gap by establishing the effect of reward management practices on performance governmental agencies in the water sector in Kenya. The study objectives were to investigate the effect of financial incentives, employee recognition, promotions and training and development affected performance in Northern Water Works Development Agency, Kenya. The study was guided by Herzberg two-factor theory, expectancy theory, and equity theory. The study used a descriptive research design and exploratory research design. Participants in the study consisted of upper-level managers and supervisors from the Northern Water Works Development Agency in Kenya. The study targeted 32 managers and 41 supervisors at Northern Water Works Development Agency, Kenya. A census study was used. Primary data was gathered with the use of questionnaires. A data collection letter was issued from graduate school at Kenyatta University. Additionally, a letter of research permission was requested from the National Commission of Science, Technology, and Innovation. Descriptive statistics (mean and standard deviation) and inferential statistics (correlation analysis and regression analysis) were used in Statistical Package for the Social Sciences 24 to evaluate the quantitative data. Data in the form of tables and figures were used to display numerical information. The analysis of financial incentives indicated a moderate to high level of agreement among respondents regarding their positive influence on performance and motivation, aligning with existing literature. Similarly, respondents perceived positive practices of employee recognition, promotions, and training, consistent with previous research emphasizing their impact on organizational performance and employee satisfaction. While areas of organizational performance strengths were identified, such as customer service and productivity, there were also areas for improvement. Despite individual factors not strongly correlating with each other, collectively, they significantly contributed to enhancing organizational performance, as confirmed by regression analysis. Consequently, policy recommendations include allocating resources to training initiatives, developing robust water management policies, investing in infrastructure projects, launching public awareness campaigns, and strengthening institutional capacity. Suggestions for further study involve longitudinal assessments of incentive schemes, comparative policy analyses, evaluations of community engagement strategies, and studies on technological innovations' adoption and impact in the water sectorenThesis