The specific objective of the study was to establish the relationship between employee fraud management strategies and market performance in the insurance sector in Kenya. A hypothesis corresponding to the specific objective was formulated and tested. The population of the study was 547 employees out of which 354 were targeted and from this a sample of 106 was chosen using purposive sampling. The study adopted the positivist research philosophy and a descriptive survey design. SPSS Version 26 was used to analyze data using Pearson Moment Correlation analysis. Research findings from the test of hypothesis established that employee fraud management strategies have a positive and significant effect on firm’s market performance. The study findings support Resource-Based Theory, Strategic Choice Theory, Prospect Theory and Fraud Triangle Theory which underpin the role played by employee fraud management strategies in a firm’s market performance.