Influence of Contract Administration on Performance of Parastatals in Kenya

Purpose: The study helped to unearth the influence of contract administration on performance of parastatals in Kenya.Methodology: This study employed descriptive research design. The study reviewed both theoretical and empirical literature and then proposed the research methodology that addressed the gaps identified in literature as well as to validate the statistical hypotheses. The study preferred this method because it allows an in-depth study of the subject. The target population was all the 187 parastatals in Kenya. Questionnaires were administered to collect qualitative and quantitative data from a sample of 127 heads of procurement, who were selected using simple random sampling, from the four strata. After data collection, quantitative data was coded using Statistical Package for Social Science (SPSS) version 22. Data was analyzed through descriptive statistical methods such as means, standard deviation, frequencies and percentage. Inferential analyses were used in relation to correlation analysis and regression analysis to test the relationship between the four explanatory variables and the explained variable.Results and conclusion: The results of regression analysis revealed there is a significant positive relationship between dependent variable and the independent variable. R square value of 0.647 means that 64.7% of the corresponding variation in performance of parastatals in Kenya can be explained or predicted by (management strategy, monitoring and evaluation, shareholder management and conflict resolution) which indicated that the model fitted the study data. The results of regression analysis revealed that there was a significant positive relationship between dependent variable and independent variable at (β = 0.647), p=0.000 <0.05).Based on the study findings, the study concludes that performance of parastatals can be improved by management strategy, monitoring and evaluation, shareholder management and conflict resolution. First, in regard to management strategy, the regression coefficients of the study show that it has a significant influence on performance of parastatals.Unique contribution to theory, policy and practice: The study recommended that public institutions should embrace contract administration so as to improve performance and further researches should to be carried out in other public institutions to find out if the same results can be obtained.