The concept of performance contracting was mooted by the government of Kenya for effective and efficient achievement of set targets in the public service. All public institutions are expected to set performance targets and indicators for their achievement. The introduction of performance contracting in public universities is an effort to institute a framework of accountability and enhance service delivery in Kenya. Though difficult and challenging to implement, performance contracting leads to higher levels of performance through periodic monitoring and evaluation of performance targets. The main objective of carrying out this study was to determine the effectiveness of performance contracting and ways of improving its implementation and measurement in Kenyan public universities. The study was carried out in public universities and targeted staff in various cadres as respondents. The researchers employed descriptive survey design where questionnaires were administered. Stratified random sampling was used in a sample size of 80 respondents. The findings indicate that performance contracting has not been cascaded to all staff members, only a quarter of the staff had signed performance contracts. However, public universities have made moderate achievements in the entire performance contract indicators. The major challenge that affects the performance contracting process is the low level of coordination. The study recommends that the performance monitoring and evaluation unit be strengthened in order to carry out its mandate effectively and departmental performance contract coordinators be appointed. Also, a clear reward and sanctions scheme is put in place to inculcate a competitive culture in public universities. The study further recommends sensitization and training of university staff to demystify performance contracting. The process should be more inclusive by involving all stakeholders.
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