Performance contracting at National social security

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.