The determinants influencing implementation of performance contracting in Kenya Revenue Authority
Nthiga, Maureen W.
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State Corporation reforms have become a common phenomenon around the globe, especially in developing countries. These have become the way of responding to the needs of the taxpayers both internal and external. One of the key priorities of the Kenya Government is to implement and institutionalize State Corporation reforms that would lead to an efficient, effective and ethical delivery of services to the citizens. The government started implementing State Corporation reforms way back in 1993 with the aim of improving service delivery. One such intervention relates to performance contracting in the state corporation and government ministries. Therefore this study aimed at finding out determinants influencing performance contracting in Kenya Revenue Authority. The study employed a descriptive survey design, targeting 932 members of staff participants drawn from all the departments of KRA in Nairobi. The study sample comprised of 93 respondents selected using proportionate stratified sampling technique. The study utilized questionnaires for data collection. Descriptive statistics were used to analyze the quantitative data and the analyzed data was reported using frequency distribution, means and percentages. Qualitative technique specifically content analysis was used to analyze the open-ended questions. Data was analyzed using SPSS version 12 and the results of data analysis presented inform of tables and graphs. The study found that performance contracts have had varied impact on KRA performance. Further, the study revealed that KRA had committed resources in the implementation of the performance contracting. Moreover, the study established that most respondents were not adequately trained to deal with the matters of performance contracting. Proper setting of objectives and strategies on the way parastatals want to do their business. This definition of objectives and strategies and how to achieve these objectives helps in defining the direction the organization will follow in implementing its duties and roles. The study can infer from the improved financial performance that performance contracting as a management tool has encouraged proper utilization of resources. Lastly, involvement in the setting of targets has encouraged participation in the decision making process of the organizations. This has reduced the error of making wrong decisions in the execution of the organizations' objectives and mandate. There should however be proper training of staff and enhance motivation. Most employees were not adequately trained and therefore the authority should intensify training from the findings most employees were not involved in setting of primary targets and this affected their output and performance, all employees need to be involved in the setting of targets so that they can own the whole process.