ABSTRACT The study was set to establish the effects of rewards on the performance of teachers in Baringo district secondary schools. The study was prompted by the declining performance in KCSE of most secondary schools in the district (67%) particularly in the last three years (2007-2009). The study examined the types of rewards given to teachers by schools in Baringo district, teachers’ perception on the effect of school rewards on their motivational levels and the effects of rewards on performance of teachers in the district. In gathering information the research study employed both primary and secondary sources. The primary source was mainly the questionnaires and interview guides while the secondary sources were the library work and internet. The study used descriptive survey as its research design. Four secondary schools from Baringo district Kenya were purposely selected to serve as a sample out of 15 schools. Two provincial schools out of 8, 1 private out of two and 1 district out of 5 were sampled. However in selecting the respondents, random sampling was used. Thirty six teachers and 4 administrators were selected. Thirteen of the teachers were from Kabarnet Boys (Provincial), twelve from Kapropita Girls (Provincial), nine from Sacho Mixed (Private) and six from Kipsoit mixed (district) inclusive of the four school administrators. These gave a total of 40 respondents which formed the sample size. Frequency tables, graphs, means as well as Spearman’s correlation coefficient were used to analyze collected data. From the findings of the study, it was revealed that Baringo Secondary school teachers valued rewards which satisfied their work content and non financial rewards and that different teachers perceived rewards differently, hence a variation in their motivational levels. The findings further indicated that teachers were not happy with their school’s rewarding systems which affected their overall performance. The study therefore recommended that teacher rewards and rewarding systems should be improved and given on time. It was also established that schools who handsomely remunerated and rewarded their staff enjoyed higher productivity