ABSTRACT 

The study set out to assess compensation and employee motivation in Pan Africn i.i !e Assurance Limited Kenya. It was guided by a number of objectives which were; to a:,scs; the effect of benefit on motivation of employees at Pan Africa Life Assurance Limited, to exarnine the effect of pay on motivation of employees in Pan Africa Life Assurance Limited .. to establish the relationship between incentives and motivation of employees in Pan Africa Lile Assurance Limited. The study was carried out using a self administered questionnaire and the results were analyzed and presented in tables, figures and on content. The sample size was I 32 respo11dcnts. The study concluded that there are a number of factors affecting employee motivation. ( ompcnsation packages that were being offered to employees were not satisfactory leading 1,, ,·niployees' low morale at work. There are still a number of challenges that need to be addrc.,.,,I rn nll levels of the organization and the ability to create report among the respondents "' a;, to create a conducive environment in order to get the required information and there is also need to enhance employee remuneration to help them love the organization. It is also importnnt to enhance communication skills applied and acquired during work management. The researcher recommends that the organization should use other alternative ,,ays of rnanaging work challenges than encouraging demotivation in the organization can trnin !heir workers according to the organization needs to help them to adopt to new challenges.