This study examined the factors influencing teacher performance in Kawempe Division, Kampala District, with a focus on the relationship between teacher welfare and performance, as well as the systemic factors contributing to poor performance among secondary school teachers. Using logistic regression analysis, the study identified several significant welfare factors, including salary adequacy, access to health insurance, housing allowances, and work-life balance, all of which positively influenced teacher performance. Teachers receiving adequate salaries were 2.34 times more likely to perform better, while those with health insurance coverage were 3.32 times more likely to demonstrate higher performance. Conversely, factors such as large class sizes, lack of professional development opportunities, poor leadership support, and high workloads were found to significantly hinder teacher performance. Teachers managing larger classes were 53% less likely to perform well, and those without professional development opportunities had a 67% lower likelihood of good performance. Increasing teacher salaries emerged as the most impactful solution, with teachers receiving better pay being 2.86 times more likely to perform well. Providing professional training opportunities and reducing class sizes were also identified as key solutions, with odds ratios of 2.46 and 2.22, respectively. Additionally, mentorship programs were recommended, with teachers participating in such initiatives being 1.92 times more likely to improve their performance. The study highlighted the critical role of teacher welfare in improving teacher performance. It recommended that school management and policymakers prioritize enhancing teacher welfare, addressing systemic challenges such as large class sizes and high workloads, and providing professional development opportunities to ensure better educational outcomes.