Discussion Paper No. 186 of 2015 on Review of Performance Measurement Tools and Performance Contracting in Kenya

Abstract

Performance measurement is crucial to the delivery of improved services in the public sector. The public contracting process in Kenya has been associated with innovativeness, effectiveness, efficiency, and quality services. The introduction of public sector reforms and performance contracting was motivated by the government’s realization of poor performance in the public sector over the years. The performance contracting process in Kenya uses the Balance Score Card (BSC) tool to measure performance. This study aimed at evaluating the performance of government ministries using the results of performance contracting composite scores. The study covered the period between 2005/2006 to 2010/11. Findings from the data analysis indicate that it is quite difficult for performance contracting to rate the ministries on the overall best performing ministry based on the performance measurement tool in use. The study recommends integration of other tools together with BSC in public contracting in order to improve public service delivery. These tools include Public Value Scorecard (PVS), Common Assessment Framework (CAF), and Leadership Effectiveness Index (LEI).