| Performance Contracts Secretariat |
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Performance Contracts Steering Committee Email:
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The Government of Kenya has adopted as a policy, the application of Performance Contracts in the management of the Public Service. The policy pronouncement in this regard is contained in the Economic Recovery Strategy for Wealth and Employment Creation (2003 – 2007). The process of performance contracting commenced with the establishment of a Performance Contracts Steering Committee in August 2003 and the issue of Legal Notice No. 93, The State Corporations (Performance Contracting) Regulations, 2004 in August 2004. Under this framework, the initial performance contracts were introduced in 16 pilot state corporations, which signed contracts on 1st October 2004 and 16th December 2004 respectively. The Civil Service, together with all the state corporations are scheduled to sign performance contracts by 30th June 2005. In order for the introduction and full implementation of the performance contracts to succeed, it is important for the concept of performance contracting and the process of implementation to be understood within the entire spectrum of the Public Service. The ensuing training manual is a detailed account of the process of performance contracting. Its purpose is to achieve the following objectives: a) To create a general awareness and appreciation of the concept of performance contracting at management levels in the public service; b) To sensitize and induct the public servants into the process of performance contracting; c) To create the critical mass necessary for disseminating knowledge of the process to the entire public service in order to ensure its sustainability; d) To guide the Public Service on the processes of designing, negotiating and implementing performance contracts, including the process of evaluation. e) To create an understanding of the responsibilities and obligation of the contracting parties. f) To develop an understanding of the legal and regulatory framework governing the operationalization of Performance Contracting. g) To guide the participants on the process of drafting the Performance Contracts. It is expected that at the end of the training, participants will be ready and able to design, negotiate and implement performance contracts, and sensitize the rest of the public service employees in their respective organizations, and ensure the process is henceforth sustained. Target Group The training will focus on both the line Ministries and the State Corporations. It is anticipated that the total number of personnel targeted for sensitization/training will be as captioned below: S/No. Target Group No. 1. LINE MINISTRIES: Ministers 27 § Permanent Secretaries/Accounting Officers 32 Heads of Department:-- Head of Central Planning Unit- Human Resource Manager - Finance- Technical 128 2. STATE CORPORATIONS: Chairman and Two Directors 330 § Chief Executives 110 Heads of Department: Head of Corporate Planning; Human Resource Manager; Finance;Technical 440 TOTAL 1067 1.1 Methodology The training/sensitization will be undertaken through conducting of a series of two (2) day workshops. It is expected that the training/sensitization will create awareness and equip the participants with knowledge and skills to enable them sensitize and train others in the Ministries/Departments and State Corporations for the successful implementation of Performance Contracting. The Ministers and Permanent Secretaries/Accounting Officers will be sensitized together. The other participants from the Ministries will be trained in clusters of 16 Ministries per workshop. It is envisioned that a total of three 2-day workshops will be conducted for participants from the line Ministries. The number of participants per workshop will be approximately 60. It is recognized that contracting parties for 16 pilot State Corporations have already been appropriately trained on Performance Contracting. In this regard, as Performance Contracting is rolled out to the rest of the State Corporations, it is imperative to train the parties involved in the Performance Contracting process. EMPLOYMENT CONTRACT Vs PERFORMANCE CONTRACT Employment Contract Under the Employment Act Cap.226, an Employer may employ a person to carry out specified tasks, duties and responsibilities. In recognition of this, the employer will be required to pay the employee such remuneration as may have been agreed and that which is considered appropriate. Some employers, under terms and conditions of service, have benefits such as a provident fund or pension scheme. In the Public Service, employees are members of the pension scheme when they are on permanent and pensionable terms and have served for a minimum of ten (10) years.Those who serve on Local Agreement (or Service Contract) terms are usually placed on a three (3) year contract at the end of which, they are entitled to a gratuity at the end of the contract period.The Employment Contract may be terminated in accordance with the terms and conditions of service governing that contract. Performance Contract Whereas an employment contract and a service contract may dwell on the terms and conditions of service, a performance contract is a mutually agreed document that specifies the responsibilities, commitments and obligations of both parties to the agreement. It itemizes the key results areas, the level of performance expected towards achievement of agreed targets, and how performance will be measured. It is presumed that every employee is hired to carry out specified tasks and functions in an organization. To the extent that a performance contract makes explicit the expected standards of carrying out the tasks, and how they will be measured, then the performance contract is a subset of an employment or service contract. |
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