ABSTRACT The study looked at motivating factors underlying performance of local government employees taking into consideration Kotido District as a case study. The study also investigated the persistent cause of declining employee performance and high rate of turnover considering motivation as the key variable and performance as the dependant variable. The study was guided by the following key objectives: • Identifying motivating factors for Local Government employees in Kotido District. • Examining the relevance and adequacy of the motivation systems offered by Kotido local Government. Empirical data was collected from Kotido District employees through questionnaire guides for primary data and secondary data being the library, internet based on the theory of Hertzberg. Structured questionnaires were used to collect data from the respondents. The questionnaires comprised of both closed-ended and open-ended questionnaires. The researcher used simple random sampling, stratification and purposive methods on 100 respondents selected from various departments. The key findings of the study suggest that: employee performance is significantly influenced by a number of motivating factors such as good working conditions, prompt payment of salaries, free accommodation and security, allowances, medical care while the absence of the above conditions affected the employee performance in Kotido district local government. The study therefore recommends that Managers should find ways of availing employees with reward schemes to enable them perform work to the expectation of the organization.