Contractual Employment and Performance of State-Owned Entities in Kenya

The purpose of this study was to assess the influence of contractual employment on performance of State-Owned entities in Kenya. This study used the positivist research philosophy by setting up the hypotheses on the basis of the existing theories. The study used descriptive research design. The accessible population of the study was 714 management employees of state-owned entities in Nairobi city. This study adopted Yamane’s (1967) formula in determining the sample sizes. The sample size for state owned entities is 256. Primary information was collected by the use of semi-structured questionnaires. Using the statistical package for the social sciences, the data were analyzed using simple linear and multiple moderated regression models. To analyze the data, both descriptive and inferential statistics were applied. The results showed a positive relationship between contractual employment and organizational performance (R = 0.602, R2 = 0.362) and (F (1,199) = 4.226, p = 0.031). The R squaredexplains the variations in the organizational performance as explained by the contractual employment. R2 of 0.362 indicates that 36.2% of the variations in the organizational performance in State-Owned entities in Kenya can be accounted for by contractual employment. The study's recommendations were based on the findings, which said that state-owned entities should prioritize variouscontractual employment practices like internship contract programs, short-term contract employment, seasonal contract and temporary fixed term work. These practices could see positive improvement on the performance. Since this study was limited to state-owned entities, future studies should explore the relationship between contractual employment practices and performance of other sectors other than public sector.