Mwaniki Sarah Wawira2026-08-242026-08-242025Mwaniki, S. W. (2025). Effect of internal workplace environment on employee performance in Huduma Centres in Central Region, Kenya (Master's thesis, Chuka University, Kenya).https://repository.chuka.ac.ke/handle/123456789/23767A Thesis Submitted to the Graduate School in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration (HRM Option) of Chuka University. Supervisors: Prof. Isaac Nkari and Prof. Andrew Muguna,Employee performance in Kenya’s public sector continues to face persistent challenges despite numerous public service reforms and the introduction of performance management systems. This study investigated the effect of the internal workplace environment on employee performance in Huduma Centres located in Kenya’s Central Region. The internal environment was examined through three dimensions: organizational culture, working conditions, and physical environment. The study also assessed whether employee characteristics moderated the relationship between the workplace environment and employee performance. The study was guided by the Person Environment Fit Theory and Herzberg’s Two Factor Theory. A cross-sectional descriptive survey research design was adopted. The target population of the study was 330 employees of Huduma Centres in central region, Kenya from which a sample of 181 was drawn using proportionate stratified random sampling. Data was collected using structured questionnaires. Instrument validity and reliability were ensured through a pilot study conducted at Laikipia Huduma Centre. Data was collected by drop and pick up later (DOPUL) method. Data Was analyzed using descriptive statistics (mean and standard deviation), correlation analysis and simple regression analysis. The findings were presented in tables, figures and diagrams. The results of the study showed a strong positive and significant correlation between organizational culture (β = 0.857, p < 0.001< 0.05), working conditions (β = 0.58, p < 0.001< 0.05) and the physical environment performance (β = 0.700, p = 0.000 < 0.05) at 5% level on employee performance. These results imply that 1 unit increase or improvement in organizational culture leads to an increase or improvement in employee performance by a factor of by a factor 0.969; 1 unit increase or improvement in working conditions leads to an increase or improvement in employee performance by a factor of 0.58 and 1 unit increase or improvement of physical workplace environment leads to an increase or improvement of employee performance by a factor of 0.7000. The study concludes that a well-structured internal workplace environment is essential for optimizing employee performance in public service institutions. It recommends strengthening organizational culture through leadership development and ethical practices, improving working conditions with fair remuneration and advancement opportunities, and enhancing physical infrastructure to promote employee comfort and well-being. These insights have practical implications for public sector policy and contribute to the growing body of knowledge on organizational performance in service-oriented government institutions. The study suggests future comparative studies in others sectors and a longitudinal study.enInternal workplace environmentemployee performanceorganizational cultureworking conditionsphysical environmentemployee well-beingorganizational performancepublic sectorpublic serviceHuduma CentresPerson–Environment Fit TheoryHerzberg’s Two-Factor TheoryleadershipKenya.Thesis