Abstract The study was carried out to know the effect of remuneration on employee performance at the ministry of energy (Rural Electrification Agency). The researcher used the following objectives of research on his search for relevant information. To find out the different types of remuneration offered to employees in rural electrification agency, to examine the tools used to measure the performance of employees in rural electrification agency and finally to find out the relationship between employee remuneration and employee performance at the ministry of energy (Rural Electrification Agency). The problem in question for conducting the research was that though much was put in to ensure remuneration of employees at the ministry of energy (Rural Electrification Agency), the performance of employees was still poor, and so the researcher was prompted to find out why or whether there is an impact of remuneration on the performance of employees at the minist1y of energy (Rural Electrification Agency). Data was collected using questioners, observations and documenter reviews as the instruments. These instruments helped me to get reliable data} i’om employees, conveniently and without ve1y tight supervision. It was found out that in the ministry of energy (Rural Electrification Agency), direct remuneration is the most preferred to indirect remuneration. In other words, direct, indirect and both direct and indirect are some of the types of remunerations that are used in the ministry of energy (Rural Electrification Agency). This one plays a very vital role in training and grooming employees who hence brings about an improvement in Performance. The Company also faces some challenges while conducting remuneration exercise. For example, the resistance fi'om employees, time constraints among others. Remuneration affects performance mainly in a positive way in that employees are able to attain the required skills for them to perform batter; they are also exposed to new techniques that are prevailing due to globalization and developments that take place and it also motivates the employees to remain active in the activities taking place in the organization. Therefore, I recommend that meniscus of energy (Rural Electrification Agency) intensifies on the methods of remuneration given to their employees and also ensures that the best remuneration techniques are used in order to improve on the pe1formance of employees in the minist1y of energy (Rural Electrification Agency).