An Investigation of the Effects of Performance Contract on Service Delivery: A Case Study of the Nakuru Sub-County in Nakuru County, Kenya

Organizations today face turbulent and rapid changing external conditions that are translated into a complex, multifaceted and interlinked stream of initiatives. These are affecting work and organizations design, resource allocation, systems and procedures in a continuous attempt to improve performance. With these environmental changes, the public sector has come under intense pressure to improve their operations and processes so as to reduce its reliance on public funding. This study sought to investigate the effect of performance contract on service deliver with particular reference to the Nakuru Sub-County in Nakuru County. The study adopted case study research design targeting a population of 375 employees. Stratified random sampling technique was used to select a sample size of 113 employees. Primary data used in this study was collected using a structured questionnaire. Data was analyzed using both descriptive and inferential statistics. The descriptive statistics included those of the mean, percentages and standard deviation while the inferential statistic involved use of T-test. The study revealed that that performance contracting has enhanced service delivery in the Nakuru Sub-County. The study therefore recommends that local government authorities as well as other state corporations should adopt performance contracting as a tool of enhancing efficiency in the public sector.