Gateri Kennedy Kariuki, Dr. Charles Ndeto


The 40 Agricultural Manufacturing Firms within the Agriculture sector have critical role towards promoting various agricultural activities in the county. The mandate of state-owned organizations involves the control of imports and exports, provision of essential goods and services, research into pest infestation, promotion of adequate agricultural studies, and establishing policies that cushion the country against famine and hunger. Performance of the agricultural sector relies on effective contract administration and regulation practices which streamline operations; hence accomplishing needs of the stakeholders. The main shortcoming with the Kenyan agricultural sector is that service agreements are not managed effectively leading to financial losses and poor service quality. Therefore, the overall objective of this proposal is to investigate on the role of service agreement practices on the performance of agricultural manufacturing firms in Nairobi County, Kenya. Specifically, this proposal aimed at: examining the influence of service agreement planning and contract administration on the performance of agricultural manufacturing firms in Nairobi County, Kenya. The scope of the study was limited to 40 Agricultural Manufacturing Firms situated in different parts of the country. Primary data was collected by use of a structured questionnaires through drop and pick method. The research instrument generated quantitative data, which was analyzed by the use of descriptive and inferential statistics. The study found procurement service agreement and contract administration had a significant influence on the performance of manufacturers in Kenya. The study recommends that all agricultural firms should align Contract Administration agendas with the overall objectives of the company to gain competitiveness. All manufacturing firms should adopt operation as a Performance Agricultural Manufacturing Firms strategy in enhancing performance.

Keywords: Service Agreement Planning, Contract Administration, Performance

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