| dc.description.abstract | Performance contracting is one of the initiatives of the government of Kenya aimed at improving
performance and enhanced service delivery to members of the public. The phenomenon has been
accepted by many governments all over the world. In some quarters, it has been considered as an
alternative to privatization, such that instead of diverting government investment to the private
sector, effort should be made through methods which can improve efficiency and effectiveness
like the performance contracting among others.
The government of Kenya has recognized the importance of rendering efficient service to the
citizen. Attempts have been made, since 1980s to ensure that this is achieved. Starting the year
2003, the government of Kenya introduced performance contracting as one of the tools aimed at
improving performance, both in various ministries and State Corporations. NSSF is one of the
state corporations which embraced the idea of performance contracting in the 2005/2006
financial year.
The principle of performance contracts operates on the basis of social agreements, where parties
involved, decide to pursue mutual targets and calls for commitment from either side. The target
acts as driving force. The motivating factor is that both parties are aware on how the targets were
set and ready to achieve them. Thus, performance contracting is based on mutual agreement and
commitment to achieve predeterrmined targets. | en |
