Performance contract as a tool for management:a case study of the state corporations sector
Abstract
The Government of Kenya introduced Performance Contracting in the Public Service as
one of the tools to improve service delivery. Since its introduction in 2004, when only a
few State Corporations were participating, Performance Contracting is now being
implemented in a majority of Ministries, Departments and Agencies (MDAs). The
decision to extend its coverage to all MDAs was as a result of the benefits that were
beginning to be manifest in participating institutions through improved administrative
and financial performance as well as improved service delivery. Ministries were for the
first time being required to work towards set targets, draw out service charters with their
clients and compare their performance with the best in the world. The results of these
efforts were so significant that they won international recognition with various African
countries wishing to learn from Kenya’s experience.
Over the last three periods of performance contracting, the public has raised
dissatisfaction on the results as they do not relate to performance (service delivery) on the
ground as perceived and received by the public. The dissatisfaction with the performance
results was not only limited to members of the public. Ministries, Departments and
Agencies have also challenged the announced results. Indeed, the public outcry over the
results became so strong that the results for 2007 were never released. The Government
recognizes the usefulness of Performance Contracting as a tool for improved service
delivery. However, in view of the apparent mismatch between the results generated by
the Performance Contracting tool and the reality on the ground, this study critically asses
the performance contract legislation as a tool for management, taking a case study of the
state corporations sector.
The study recognizes performance contracting as a part of the wider performance
management system. In undertaking the review of Performance Contracting in the Public
Service, the study reaches the conclusion that the Performance Contract is now
institutionalized and mainstreamed in Public Service Institutions, however the full
benefits of Performance Contracting will be realized when all the state cooperation shall
be obliged to mandatory embrace the system.
Citation
Degree of Master of Law (LL.M) of the, University of NairobiPublisher
University of Nairobi