| New Public Management (NPM) is an administrative philosophy that can be said to be the theoretical background for most of the public sector reforms that have been experienced in both developed and developing countries since the1980s. Application of NPM as a managerial theory emphasizes adoption of private sector practices in public institutions such as privatization, contracting out government services and introduction of competition in service delivery.With the intensified challenge of providing quality service for citizens, Kenya adopted Performance Contracts as a tool not only to improve service delivery but also to refocus the mindset of the civil service from looking within to focusing on customers and results. The push factor for introduction of performance contracts in Kenya is the assumption that institution of performance measurements, customer orientation and an increased focus towards incremental productivity and cost reduction can lead to improvements in service delivery.(GOK,2003)The purpose of this research was to examine the Performance Contracts application at the National Hospital Insurance Fund and some of the challenges faced in its implementation, as well as the efficacy of the instrument in improving service delivery. |
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