Abstract: Stock market performance at the Nairobi securities exchange has not improved despite liquidity incentives. It is not clear whether liquidity incentives are a gift or a motivator; sometimes stock market performance increases when liquidity incentives decrease and sometimes even decrease when more liquidity incentives are prevailed. The study aims to determine the relationship between liquidity incentives and stock market performance. This study adopted a descriptive research design with a study population of 61 listed firms in NSE. A sample of 150 respondents was picked through stratified random sampling technique from 30 firms listed at NSE. The study used both primary and secondary data sources in gathering data for analysis. Data collection involved self-administration of questionnaires. The study used the Cronbach (Alpha – α) model to test the reliability of the data. Data was analyzed by use of Stata (version 13). Correlation analysis, multiple linear regression analysis, skewness and kurtosis tests were all conducted on the data collected.