Challenges facing the implementation of performance contract in selected state corporations in Kenya
The purpose of Performance contracting is to improve efficiency and effectiveness in the management of public affairs through accountability. However, the implementation process fully began in 2004 covering all the public enterprises and ministries. There was little evidence of success due to a number of challenges in the implementation process. Some of the common challenges encountered by a number of enterprises included fmancial resources challenges, human resources challenges and low level of commitment from both government and organization. In this study a survey was carried out among the managers and their supervisors of state owned corporations with head offices in Nairobi and its environs. The research investigates further whether financial resources, human resources and level of commitment influence the implementation of performance contract within public enterprises. The design adopted for the study was a survey research design. It included both qualitative and quantitative method where information was sought through self administered questionnaires from the staff themselves and from their supervisors .The data collected was processed and analyzed using the Statistical Package for Social Sciences (SPSS) technique. The study found that the challenges facing the performance contract included; inadequate flack of commitment from government and top management, inadequate financial resources, manpower in terms of key competence to undertake key tasks, inadequate training and low level of awareness of performance contract. The study recommended that there should be more commitment coming from the government and top management. Also more resources needs to be directed towards the enterprises to enable them perform keys tasks and more training given to staff.