Publication:

Influence of performance contracts practices on employees’ service delivery at Kenya Revenue Authority: case of southern region

An increase in service delivery among public sectors has been observed as a result of the implementation of performance contracting as a tool for performance measurement, making public entities more efficient. Researchers are focusing on exploring new concepts of performance management in Kenya and evaluating the impact of performance contracting on service delivery. The main challenge in this research is the lack of standardization in performance measures tool due to the tasks being linear and the nature of work being non-linear, also the aspect of some objectives not quantifiable hence relies on expert judgment, moreover the standing in for officers on sick leave, retirement, transfers and no replacement, which after evaluation doesn’t add to ones contracted objectives and unavailability of an incentive system for high performers. The study was conducted in the southern region of Kenya as defined by the Kenya Revenue Authority, which included all tax offices in southern region which included, Mombasa North Mombasa South, Voi, Lamu, Diani and Mombasa HQ within the financial year 2022/2023. The objective of the research was to understand the influence of performance contracting practice on employees’ service delivery at the Kenya Revenue Authority and specifically, to determine the effects of target setting, target implementation, and monitoring and evaluation on employees' service delivery. The research adopted a descriptive research design, with a sample size of 201 staff members out of a population of 420. To ascertain reliability and validity the pilot test was conducted which was in range of 0.7 and 0.74. The data was collected through a structured questionnaire and analysed using SPSS version 26. The results showed a negative effect of performance contracting indicators on service delivery (t=-1.775, p < 0.078) at the Kenya Revenue Authority. However, target setting (t=0.972, p < 0.038), target implementation (t=5.145, p < 0.001), and monitoring and evaluation (t=3.319, p < 0.001) were found to have a significant effect on service delivery. In conclusion, proper target setting, implementation, and close monitoring and evaluation are crucial for the achievement of the organization's goal of tax simplification, revenue mobilization, and customer satisfaction.