Factors Necessary For The Design Of Good Performance Contracts For State Corporations In Kenya

Abstract

This research sought to determine the extent to which the necessary conditions for designing and implementing performance contracts were satisfied by State Corporations in Kenya. To achieve this objective, data were collected through a census survey. The entire sixteen pilot group State Corporations that signed performance contracts in 2004 v.ere studied. Data was collected using a structured questionnaire with close ended questions. The questionnaire was administered by mail. Responses were received from fourteen state corporations giving a response rate of 87.5%, The findings of the study showed that of the 39 necessary conditions that formed the variables of study, 46.2% of them were rated highly with mean scores of 4 and above. The remaining 53.8% of the conditions were rated moderately as necessary with mean scores of between 3 and 3.9. With regard to the extent to which the conditions were satisfied by the state corporations in the design and implementation of performance contracts, it was established that 33.3% of the conditions were satisfied to a large extent, 64.1 % to a moderate extent and 2.6% to a small extent. Generally, it was observed that not all conditions that were perceived to be necessary for the design and implementation of performance contracts were satisfied in the design and implementation of performance contracts by the State Corporations