Poor performance by National Social Security Fund (NSSF) has been a matter of public concern since 1965. A historical analysis of NSSF service delivery in Kenya revealed a steady decline despite a raft of measures taken to alleviate the situation. The decline was evident in member contributions, registrations, benefit processing, compliance, cost management, suspense containment and resources utilization.

Consequently, NSSF adopted the application of Performance Contracts in the management of its affairs in June 2005. A Performance Contract is a tool for measuring performance against negotiated targets. The broad objective of introducing the system was to enhance service delivery in a transparent and accountable manner. Resultant outcomes expected include enhanced service delivery in the areas of concern.

The innovative strategy includes specification of mutual performance obligations and responsibilities of the parties, signing annual performance contracts and regular monitoring and evaluation of performance. In implementing this good practice, resources and inputs have been used optimally. Results achieved over the last five years are impressive, while useful lessons have been learnt. The good practice is replicable factoring individual organization situations.

ISSA Good Practice Award Winner
Publication year: 2008
Implementation year: 2005
Topics: Administration and management, Governance of social security
Organization: National Social Security Fund
Country: Kenya