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The objective of this study was to determine the drivers of implementation of performance contracts in state corporations in Kenya. Specifically the study focused on the National Council for Population and Development . According to the model summary, R is the correlation coefficient a strong positive relationship between the indepedent variables and depedent variable. The coefficient of determination (R 2 ) showed the dependent variable explained by the change in the independent variables that was 73.10 % of the implementation of performance contracts. The adjusted R square was slightly lower than the R square which implied that the regression model may be over fitted by including too many independent variables. This indicated that employee motivation, employee training, legal framework and monitoring & evaluation were important factors that needed to be applied to enhance to implementation of performance contracts in state corporations in Kenya. The study contributes the body of knowledge by examining the influence of employee motivation, employee training, legal framework and monitoring and evaluation on implementation of performance contracts in state corporations in Kenya. The implementation of performance contracts in state corporations in Kenya is greatly affected by employee motivation, employee training, legal framework and monitoring and evaluation. The study contributes to the existing literature in the field of human resource management by elaborating exiting theories, models and empirical studies on implementation of performance contracts in state corporations. A longitudinal study should be carried out to monitor the relationship between demographic factors such as the age, marital status, family status, educational level and experience of employees and their implementation of performance contracts in the organization. Secondly, a further study should be carried out to explore the influence of training practices, selection process practices, employment practices and job enrichment practices to enhance implementation of performance contracts. Key terms: Employee Motivation, Employee Training, Legal Framework, Monitoring and Evaluation, Performance Contracts
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