Abstract: Changes in the working place and pressures of life and market demands have led to high turnover of talented and highly performing employees. At the same time, the cost of acquisition of new employees is high and thus organizations seek ways of improving their employee retention rates. This study sought to assess how career planning affects employee retention in insurance companies in Nairobi City County. The study is anchored on Herzberg’s two factor theory and employed descriptive research design. The target population was the 61 insurance companies and three respondents were selected from each insurance company. The respondents were senior managers from three departments - human resource, operations and finance.