Improved service delivery has been the focus of the Kenyan government in the recent past as part of public sector reforms and in the quest for the same, Kenya introduced performance contracts. The purpose of this study was on performance contracting and its effect on county government service delivery case of Mandera County. The study was guided by the following specific objectives: to establish the effect of goal setting on service delivery, to assess how feedback systems affect service delivery, to examine the effect of competency on service delivery and to establish how training affects service delivery in Mandera County government. This study adopted the qualitative and quantitative research methodology. The sample size for this study was 91 respondents. This research used a questionnaire as the data collection instrument. This study collected both qualitative and quantitative data. After data collection the data was edited and coded in readiness for analysis by the researcher. The qualitative data collected will be subjected to content analysis. On the other hand the researcher used descriptive and inferential statistics to analyse the quantitative data. The analysed data was presented using statistical and graphical techniques. Statistical techniques used included measures of central tendency (mean, median and mode) and measures of dispersion such as standard deviation and variance. Graphical techniques involved the diagrammatic representation by use of tables and charts. The findings show that most respondents agree that goal setting, feedback systems, competency in delivery of services and training affects service delivery. The most significant effect of goal setting on service delivery was realistic deadlines to finish the task at hand. Staff responsiveness was considered to have the greatest effect on service delivery. Ratio of work done and trainers’ competence has greatest effect on service delivery. It was concluded that performance contracting has brought about competency in the utilization of resources and improved on service delivery in public organization. In the study, a strong positive relationship between performance contracting and service delivery among the county government was identified. The results demonstrated that performance contracting led to goal setting, introduction of feedback systems, competency delivery of services and regular training and development. The study proposes the following recommendations; in order to ensure service delivery in the public sector; it is recommended that performance contracting should be implemented across all departments. The study also recommends the implementation of performance contracting in county governments in order to realize the efficient utilization of resources.