The Salaries and Remuneration Commission's continuous review of state and public officers' salaries, aimed at enhancing morale and productivity, has not translated into improved public service delivery, as evidenced by public dissatisfaction with diminishing service quality and a declining number of public servants. This study investigates the impact of motivation on employee performance in the public service, using the National Hospital Insurance Fund (NHIF) as a case study. Specific objectives include assessing the effects of compensation, career development opportunities, retirement benefits, and employee recognition on NHIF employee performance. Rooted in theories such as Hierarchy of Needs, Total Reward, Theory of Work Adjustment, and Expectancy Theory of Motivation, this study adopts a descriptive research design. Targeting administrative staff at NHIF Nairobi, the study population comprises 230 staff, and a stratified simple random sampling method is used. Primary data is collected through questionnaires, validated through validity and reliability tests, and analyzed quantitatively using descriptive statistics. The findings reveal that organizations offering competitive salaries attract skilled and high-value employees, contributing significantly to organizational performance. Similarly, organizations investing in training, clear growth paths, mentorship, and meaningful tasks cultivate a highly motivated workforce. The study recommends that NHIF management implement fair, performance-based compensation, regularly reward highperforming employees, provide career development programs, and foster a culture of non-monetary recognition for positive contributions. This research is pertinent to NHIF policymakers, the Central Government of Kenya, other public service sectors, human resource practitioners, and researchers. By exploring the financial implications of motivation on employee performance, the study provides insights for policymaking, resource allocation, and strategic decision-making in public service organizations.