The objective of the study was to determine the relationship between psychological contract and job satisfaction of secondary school teachers in Gem district, Kenya. A descriptive survey design was used with the target population of 400 teachers in public secondary schools. Stratified random sampling technique was used to come up with a total sample size of 200. Questionnaires with open ended and closed ended questions were developed by the researcher and used in primary data collection. The responses of 180 teachers out of a sample of 200 teachers revealed that there is a relationship between perceived psychological contract and job satisfaction. Using linear regression analysis, the study showed that an increase in the overall fulfillment of obligations and promises (psychological contract) by both the teacher and school would directly cause an increase in job satisfaction. Another key finding of the study was that, in general teachers feel they fulfill their promises and obligations to a great extent to the school, while the school fulfills their promises and obligations to teachers to a little extent, which means there is violation of psychological contract and therefore job dissatisfaction. This study then recommends the government and the school management to revise their recruitment policy and emphasize on equal employment opportunities and endeavor to fulfill their promises and obligations (psychological contract).
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