Abstract: Stock market performance at the Nairobi securities exchange has not improved despite tax incentives. It is not clear whether tax incentives are a gift or a motivator; sometimes stock market performance increases when tax incentives decrease and sometimes even decrease when more tax incentives are given. The study aims to determine the relationship between tax 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).