INTRODUCTION

The government adopted performance contracting as its flagship tool for performance maagement in its endevour to enhance accountability, efficiency andultimately improve service delivery in the public service. institutionalization of Performance contracting in the public service is aimed at accelerating achievement of the government priorities, as stipulated in the Kenya Vision 2030, Medium Term Plan IV and Bottom-Up Economic Transformation Agenda. 

KEY ELEMENTS OF A MODEL PERFORMANCE CONTRACT

1. Preamble

sets out the intentions of the two parties to the PC and provides the rationale for the two parties to enter into a performance contract.

2. Part 1: statement of responsibility

This is a formal statement of commitment to performance made to the appointing authority and the public at large.

3. Part II: Vision statement, mission statement and strategic objectives

this part defines the desired future positioning and purpose of existence of the institution derived from its mandate. They are drawn from the Strategic Plan. Strategic objectives should range between 3 to 6 to avoid duplication. 

4. part III: Statement of strategic intent

This part establishes linkage to the National Vision and the broad organizational priorities. it commits the management to deliver on their mandate. 

5. Part IV: Commitments and obligations of the government

This refers to any support that should be extended to the institution by the government to facilitate achievement of the performance targets.

6. Part V: Reporting requirements

This part focuses on modalities and frequencies of periodic (quarterly) and annual reporting. It distinguishes between performance data required periodically for the purpose of continuous monitoring and performance information required at the end of the contract period for the purpose of annual evaluation

7. Part VI: Duration of the performance contract

The duration of the PC is one financial year, from 1st July to 30th June. 

8. Part VII: Signatories to the performance contract

This part signifies the commitment to implement the contract. it stipulates the persons who shall sign the contract at the various levels of PC implementation. 

9. Annexes

10. Explanatory notes 

PERFORMANCE CONTRACT MATRIC

PC matric is the core part of the contract designed to enable measurement and evaluation, aimed at ensuring standardization of PCs. it outlines: 

i. performance criteria- 

the broad category for evaluating the achievement with assigned sub-weights. They include

• a. Financial stewardship- 

• b. service delivery

• c. core mandate

• d. implementation of presidential directives

• e. access to government procurement opportunities (AGPO)

• f. Promotion of local content in procurement

• g. cross cutting

ii. performance indicators- 

measurable variables within a performance criteria category by which the performance of an institution is assessed. The indicators have units of Measure and weights assigned to them. 

a financial stewardship

a1. absorption of allocated funds (Gok)- refers to application of budgeted and approved funds (GoK) to programmes, projects and activities for which they were appropriated and planned for. this links the process of budgeting to performance target setting. Absorption will be computed by dividing the actual total expenditure with the total allocated funds. 

a2. appropriation - in - Aid (A-in - A) - refers to classes of revenue that the national treasury authorises an accounting officer to collect and use. this includes also donor funds reflected as direct payments A-in-A in the printed estimates

a3. pending bills- These are financial obligations that remain outstanding at the end of the year and have to be provided for in the subsequent budgeting periods. Institutions should ensure that the pending bills do not exceed 1% of the actual budgetary allocation for the FY. 

b service delivery

b1. implementation of citizens service delivery charter- it details key service delivery commitments of the institution. the institution should ensure it fulfills their commitments and progressively improve customer experience through quarterly monitoring. 

b2. business process re-engineering- it is a key driver of service improvement and innovation. BPR enables institution to review, interogate and re-design their service delivery process in order to serve their customers better and reduce customer turn-around time. Mounting services into Huduma service portal and institutional website for centralised access and wide publication is essential. 

b3. resolution of public complaints- all public institutions are required to promply addres and resolve public complaints referred to them directly or channeled through the commission on administrative Justice (CAJ). CAJ will issue a certificate for the institution indicating the level of achievement in percentage for this indicator. see CAJ Website www.ombudsman.go.ke 

c core mandate

c1. institution's priority projects/ programmes

The institution identifies the performance indicator that are informed by the KENYA VISION 2030, MTP IV, Agenda 2063, SPS, SDG and other national priorities. 

see pc guidelines for other indicators in core mandate. 

g crosscutting 

g1. Asset management- process of making the best use of an institution's equipment, machinery, tools, buildings, etc. The institutes should undertake inventory management and disposal of idle assets. 

g2 youth internship/ industrial attachment/ apprenticeship- Institutions are required to involve the youth progressively in internships, industrial attachments or apprenticeship programs for skills transfer. 

g3. competence development -refers to the systemic enhancement of skills and profincies in order to address career progressionof individual employees in order to improve institutional performance. 

g4 disability mainstreaming- The institution is required to implement government policy on affirmative action for persons with disabilities. 

g5. gender mainstreaming- this is the process of assessing the implementation for women, men, boys and girls in any planned action. the ultimate goal of mainstreaming is to achieve gender equality. 

g6. prevention of aclohol and drug abuse- this refers to the implementation of programmes/ activities aimed at reducing the prevalence of alcohol and drug abuse and minimizing the negative effects thereof. 

g7. prevention of HIV infections- the focus of this indicator is implementation of a package of interventions aimed at reducing the prevalence of HIV INFECTION AND NON-COMMUNICABLE DISEASES. the objective is to mainstream HIV interventions. 

g8. safety and security measures- refers to all aspects relating to the safety and security of personnel, documents, information, equipment and assets are required to put in place safety and disaster preparedness mechanisms to address the current insecurity issues affecting the institution. 

g9. road safety mainstreaming- this is a multi-sectoral approach to ensure that road safety issues are made an integral part of all government projects/ programmes. MDAS are required to actively engage in developing projects and executing activities that contribute to the prevention and management of road traffic injuries and fatalities in kenya. 

g10. corruption prevention- this indicator aims to combat and prevent corruption, unethical practices and promote standards and best practices in governance. this is in line with the ethics and anticorruption commission act no. 22 of 2011 and the leadership and integrity act of 2012 and the bribery act od 2016.

g11. National cohesion and values- this is an indicator that aims to promote national cohesion, national values and principles of governance to create a transformed, cohesive peaceful, united and values- driven nation. institutions will be required to align and implement commitments and way forward in the annual president's reprt on national values and principles of governance. 

iii. Performance targets- 

the desired level of achievement for a performance indicator.