Abstract
The use of performance contracts has been acclaimed as an effective and promising means of improving the performance of public enterprises as well as government departments. The public sector in Kenya is faced with the challenge of poor and declining performance, which inhibits realization of sustainable economic growth. The Public sector had consistently fallen below expectations. A review of literature shows that several studies on performance contract have been carried out. Kobia & Mohammed (2006) conducted a survey on performance contracting in Kenya and found out that a majority of the respondents were conversant with performance contracting. However 44 % indicated that they did not have an individual work plan, 79.6 % of the respondents had not received any training on performance contract while 26.4 % admitted that their ministries had not signed the 2006/7 performance contracts with the government (Kobia & Mohammed, 2006). This study intends to investigate in details the effects of performance contracting implementation on employees‘ performance in Embu Water and Sanitation Company Ltd Embu County, Kenya. Descriptive survey will be used in this study to collect information. The population of the study will involve 100 management staff in Embu Water and Sanitation Company Limited. A sample population of 79 will be used in this study. Stratified proportionate random sampling technique will be used to select the sample. Both the primary and secondary sources of data will be used to obtain information for the study. Primary data will be obtained through administering a structured questionnaire which comprises of open-ended and closed questions. The questionnaire will be subjected to a pilot test to ensure content reliability and validity. Quantitative data collected will be analyzed by the use of descriptive statistics using SPSS (Version 20) and presented through percentages, means, standard deviations and frequencies. The information will be displayed by use of bar charts, graphs and pie charts and in prose-form.
