Influence of performance contracting tools on service delivery in Kisumu county: a case of lake basin development authority, Kisumu county

Abstract

Performance contracting has attracted a lot of debate in the recent past. The common issues that have necessitated performance contracting include; delivery of quality and timely services through improved performance; maximization of shareholders wealth through improved productivity; reduction on reliance on the exchequer; utilization of resources by instilling a sense of accountability and transparency and, reduction/elimination of bureaucracies to give government agencies autonomy so as to provide quality public service. In Kenya, the service delivery standards are still considered below the tax payers’ expectations and affect the quality of life of the people and nation’s development process. From the foregoing, there has been frequent demand in Kenya to re-shape the mandate, structure and operations of the public sector to enhance productivity, to be more focused, effective, efficient and responsive to the needs of the tax payers. Thus the PC through its tools was expected to streamline services and reap benefits to the tax payers. The purpose of this study therefore was to determine the influence of performance contracting tools on service delivery in Kisumu County, using the case of Lake Basin Development Authority. The survey targeted the implementers of the performance contracting as the population elements from which the sample was drawn. This included the performance contracting staff and heads of departments within five departments. The researcher used both primary and secondary data to collect views, opinions, perceptions, feelings and attitudes from the respondents on issues regarding influence of performance contracting tools on service delivery by Lake Basin Development Authority. The study used stratified and simple random sampling. The data was collected by use of structured questionnaire after which the data collected was coded then responses grouped into various categories. The findings have been presented using frequency tables. The findings generally show that the introduction of performance contracting and the use of various tools have contributed to enhanced service delivery. However, it is noted that although individual and organizational commitment to performance contracting is directed towards achieving improved service delivery, not all staff sign the performance contract. This may lead to non-commitment by a section of staff who may feel they are not directly accountable to non-achievement of the performance contract goals. The study recommends that the performance contract needs to be restructured in a way that service delivery innovation which is key to improved service delivery is reviewed to put in place deliberate measures that would lead to staff motivation. This would ensure that more innovative ways of service delivery are generated by more staff in any single organization. Further the study recommends to the government to re-structure the PC to ensure all staff members sign performance contract so that there is ownership from the lowest to highest cadres in the organization. Although this is the requirement, in practice as observed in Lake Basin Development Authority, only the top and middle level management are the ones who sign the PC.