| dc.description.abstract | One of the significant management reforms in the public service in recent times aimed at
addressing the agency problem has been the introduction of performance contracts. Performance
Contracting is part of broader public sector reforms aimed at improving efficiency and
effectiveness in the management of the Public service. Part of the strategies of improving this is
providing enough finances to run the agencies programs and donor funding has been very
instrumental. However, little is known on how the donor funds affect the performance of
government agencies. Thus, the objective of the study was to establish the relationship between
donor funding and performance contracting score of state owned enterprises in Kenya. The
descriptive study targeted a population of 170 state-owned corporations in Kenya from which 40
were chosen. The study used secondary data sources from the Treasury and Ministry of
Devolution for 2009/10 to 2012/13. Simple linear regression analysis was conducted. The
findings show that, at 95% confidence level, there were significant and good but negative linear
association between donor funding and performance contracting (p < .05). The study concludes
that on average, there is a negative linear relationship between donor funding and performance
contracting score. Depicting that donor funding enhances the performance contracting score of
state-owned corporations. | en |
