|dc.description.abstract||Performance contracting in Kenya was relatively new concept which had been implemented for a period of less than five years ago. The government of Kenya, sought to follow in the footsteps of the private sector, introduced the contracts in 2003. It aimed at enhancing the performance of the civil servants through improved accountability and productivity. The Kenya Revenue Authority (KRA), being a part of the GoK, also had to implement these performance contracts.
The implementation of the contracts was nonetheless inhibited by various hitches and challenges which the study sought to unveil. The study aimed at identifying the extent to which the employees' attitudes at KRA, the performance measurement instruments, the external environment, the training and skills of the staff as well as the working conditions challenged the implementation of the performance contracts at the Authority.
Chapter two reviewed by Kaplan and Norton, Okunishi, Pfeiffer, Sokoya amongst others who had researched on the performance contracts and its related' challenges. Literature gaps as far as local content on performance contracts was lacking or scarce.
Descriptive research design was used for the study as it seeks to have the respondents to describe factors that challenge the implementation of performance contracts at the Kenya Revenue Authority. The study targeted 274 managers of Kenya Revenue Authority at the southern region stratified according to their levels. A sample size of 42% was taken to achieve 116 respondents. (Cochran, 1963; and Israel, 1992). 94 respondents returned their questionnaires making it an 81 % response rate.
Simple random sampling using predetermined intervals was used to identify the respondents. Primary data was obtained by use of self administered structured questionnaires distributed to the respondents and collected after two days; analysis was then conducted using descriptive statistics. Statistical Package for Social Scientists (SPSS) was used to aid in the analysis. The data was presented using pie charts, bar graphs and frequency tables.
The findings were that KRA was seriously challenged by working conditions, employees' attitudes, measurement instrument and external environment. The only factor that KRA was performing minutely well in regard to performance contract was Training||en_US