Human Resource is an important corporate asset and performance of organizations depends upon the way it is put in use through human resource management, which aims at ensuring that organizations achieve success through people. The distinctive feature of HRM is its assumption that improved performance is achieved through the people in the organization. Kenya Power in its bid to embrace the idea of sustained performance and flexibility has engaged approximately 11,000 human capital who are charged with the responsibilities of ensuring supply of adequate and reliable electricity to its customers; improvement of customer service; acceleration of electricity access to the public; and creating value for the shareholders. Despite this, Kenya still faces challenges like prolonged power outages, delayed constructions of power lines, delayed connections and reconnections are experienced, thus calling for appropriate measures besides increase in human capital to enhance the company’s performance. A study that examined the role of HR functions of recruitment and performance contracting on organizational performance through reduction in power outages, increased customer base and increased revenue levels was carried out with reference to Kenya Power, Nairobi West Region. A questionnaire was administered to the respondents and an analysis of the responses established that high percentages of 46.7 and 47.8 respectfully agreed that there had been continuous reduction in power outages in the year under research and an increase in customer base was experienced. A high percentage of 33.7 strongly agreed on that there had been increased revenue levels in the year under research. The study found out that the HR functions of recruitment and performance contracting positively affected organizational performance and recommended continuous improvement on the HR functions to ensure continuity in increased organizational performance.
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