The study examined factors constraining the implementation of performance related pay in government agencies in Kenya. It investigated the influence of management commitment, employee participation and setting of performance targets on the factors influencing implementation of performance related pay in Kenya Revenue Authority. Findings from various studies have indicated that many organizations have embrace Performance Related Pay but the implementation process remains a challenge. Literature was reviewed in line with the study objectives and the research questions. The study employed the use of a case study as a research design. A self administered questionnaire was used as the primary data collection instrument. To achieve the main objective, a description survey of 232 respondents was conducted from a population frame of 2322 from employees Kenya Revenue Authority in Times Tower Nairobi headquarters. Statistical inferences indicated that high reliability was achieved by the data collection instrument with Cronbach’s Alpha coefficients ranging from 0.764 to 1.000. The findings of the study were that at least three of the elements under study contributed to the constraints faced in the implementation of the performance related pay. The study therefore, recommends that further study on performance related pay be done in relation to the strategic planning of KRA and other public organizations in Kenya, in order to enhance service delivery and employee performance.
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