Nyukuri, Carolyne Murenga2026-02-102026-02-102025-07https://ir-library.ku.ac.ke/handle/123456789/32348A research project submitted to the school of business, economics and tourism in partial fulfilment of the requirements for the award of degree of Master of Business Administration (Human Resource Management) of Kenyatta University, July 2025 Supervisor. Dr. Jedidah muliEmployees ought to be treated as valued assets and sources of competitive advantage because of their trust, high-quality skills and adaptability, knowledge and fresh ideas, and commitment. Healthcare professionals are essential to the functioning of the healthcare system in Kenya. Multiple studies indicate that the healthcare industry experiences a significantly higher effect from poor employee retention when compared to other industries. Quality service delivery is a crucial component of any health system and is seen essential for attaining sustainable development goals. Effective service delivery in the healthcare sector can be attained through expensive service providing, timely service delivery, sufficient access to healthcare facilities, and making sure healthcare providers fulfill their service obligations. The main objective of this research was to ascertain the effects of compensation strategies on staff retention in the public health sector in Nairobi city county, Kenya. The precise goal were to determine the effect of base pay, incentive pay, workplace environment, and recognition on staff retention in the public health sector in Nairobi City County. The research hinged on: Herzberg's two-factor theory, agency theory, reinforcement theory, Vroom's expectation theory, and the notion of wanted versus unwanted turnover. The research utilized a descriptive research design. The research chose a subset from the total population of 4,227 individuals working in the healthcare industry in Nairobi City County. The sample size was ascertained vi the Yamane formula. The population was divided into four categories: doctors, nurses, technicians, and nutrition and wellness officers, utilizing a random selection method. Next, the 365 participants were selected by a process of simple random sampling. The data collection tool underwent assessment to ensure its validity and reliability. The data collection process encompassed the utilization of both primary and secondary data gathering methodologies. Questionnaires were employed to acquire primary data. The research tools were rigorously assessed for their validity and reliability. The elements of the tool underwent testing for content validity and face validity, whereas the dependability of the research questionnaire was assessed utilizing Cronbach's alpha. The data was evaluated utilizing both descriptive and inferential statistics, employing the SPSS version 24 software. The descriptive analysis was through computing frequencies and percentages to examine the demographic characteristics of the participants. The inferential statistics involved the employing of multiple regression and correlation analysis. The analyzed data was presented in both tabular and graphical formats. The research revealed that base pay strategy, incentive pay strategy, work environment strategy and recognition strategy on staff retention in the public health sector in Nairobi City County. The research resolved that a base salary provides employees with a reliable and predictable income, which can reduce financial stress and improve overall job satisfaction. An effective incentive compensation strategy reduces turnover by fostering loyalty and commitment among employees. A well-structured work environment fosters a culture of respect, collaboration, and support, leading to higher job satisfaction among employees. A culture of recognition fosters a positive work environment where employees feel valued and appreciated, which can enhance overall job satisfaction. The study recommends that the County should regularly conduct salary surveys to compare public health sector salaries with those in the private sector and other regions to ensure in identifying gaps and ensuring competitive compensation. The County should conduct market research to ensure that salaries are competitive with both public and private sector healthcare jobs in Nairobi and the broader region. The County should create a workplace that values diversity and inclusivity, ensuring that all staff feel respected and valued regardless of their background. The County should create platforms where employees can recognize and appreciate their colleagues’ efforts, fostering a culture of mutual respect and supportenThesis