Factors influencing the implementation of performance contracting at Kenya Revenue Authority

Abstract

The study sought to achieve the objectives of determining the extent to which performance contracting has been implemented and to establish the factors that affect the implementation of Performance contracts in Kenya Revenue Authority. To achieve these objectives, the study was carried out through a case study design. Personal interviews were conducted on eight senior level managers by the research using interview guides which had open ended questions. The eight respondents were drawn from eight different departments so as to fully analyse the situation across various departments of KRA; Customs, Corporate Research and Planning, Domestic taxes Domestic Revenue, Domestic Taxes- Large Taxpayer Office, Road Transport, Information and Communication Technology and the Human resources department. The researcher sought appointments with these respondents where he asked the questions following the interview guide (attached appendix 1). The data collected was of qualitative nature and was analysed by content analysis whereby key theme, concept and argument from each response was identified and analysed. The findings were presented in a narrative format and they showed that performance contracting had not been fully implemented in the organisation as only a section of the staff signed performance contracts i.e. from grades one to ten. The rest of the staff, grades eleven to sixteen fill job evaluations, representing about forty percent of the staff. Secondly, the findings showed that the implementation of performance contracts in the organisation was affected by various factors including resource inadequacy, unrealistic and unachievable targets, reward and penalty system, communication and abrupt staff transfers hamper the implementation among others. The study recommends that all levels of staff should be introduced to the concept of performance contracting. Performance contracts should be developed for each grade depending on the duties. This is to ensure that they are rational and uniform. Targets sets should be realistic and achievable and lastly drastic staff transfers should be avoided midyear.