Enhancing Service Delivery through Performance Contracting: A Case Study of Lake Basin Development Authority

Abstract

Performance contracting is part of the broader public sector reforms aimed at improving efficiency and effectiveness in the management of public affairs to the expected standards. Public institutions as a result are expected to set performance targets and indicators for their achievement. Its re-introduction in State Corporation and agencies was an effort to institute a framework of accountability and enhance service delivery in Kenya. Therefore the purpose of this study was to assess the impact of performance contracting on service delivery at the Lake Basin development authority. Specific objectives included: to analyze performance contracting at the Lake Basin development authority; to establish the importance of performance contracting on service delivery at the Lake Basin development authority; to assess the impact of performance contracting on service delivery at the Lake Basin development authority and to examine the challenges faced  by performance contracting at the Lake Basin development authority. The main concern was that Performance contracting was introduced to increase efficiency and achieve effectiveness but conversely state corporations and agencies continue to provide services which are not effective. This study for that reason will be beneficial to the policy makers and administrators who may use the study to design an effective human resource programs inspired towards performance improvement and quality service. It identified the benefits of performance contracting, its impacts and the challenges faced in the implementation process. The study was conducted at the Lake Basin Development Authority and it employed descriptive survey research design using probability sampling non-probability sampling arriving at a sample size of 107 respondents. The sample size comprised 83 employees of LBDA, 20 consumers of LBDA and purposive sampling for 4 officials. The research instruments that were used to collect data included questionnaires and the interview schedules. From the findings it was evident that performance contracting was being implemented and it was working. The major challenge Challenge was Lack of proper communication between the top cadre employees and those at the lower cadre hence decision making utilized top down approach. Thus, it was concluded that performance contracting improved employees’ commitment and allowed for creativity in 

service and products development hence enhancing efficiency. Further, the study recommends that for government agencies and parastatals in order to achieve effective service delivery, they should enhance communication and capacity building to the employees and the service users, link planning to motivation, to enjoin e-procurement to reduce bureaucracy and focus more on private and public partnerships.

Keywords: Service delivery & Performance contracting