Abstract:
This study examines the challenges in the effective implementation of Performance
Contracting in selected public entities in Kenya. Many institutions have been experiencing
challenges in the implementation of performance contracting and this has affected service
delivery. This study focused on three factors; employee training, organization culture and
management support, which also formed the objectives of the study. This study is informed
by literature review on performance contracting initiatives, their implementation and
applications in the diverse setting of the public sector in Kenya. To sustain the main
objective of the performance contracting; which is improved public service delivery, there is
need for proper management of public resources as well as addressing the challenges present.
Data was analysed using multiple regression with the help of STATA Version 13 software to
establish the relationship between the variables. The findings of the study show that there is
a positive and significant relationship of the independent variables on the dependent variable.
The study shades more light on the challenges faced in the effective implementation of
performance contracting in public entities in Kenya. It builds on the findings of earlier
studies on challenges in the implementation of performance contracting in the Public Sector
and gives insight on other challenges not factored in by the earlier studies. The results will be
of interest the government and public entities. Future research areas have been indicated in
the study.
