institutional activities depends on the relationships between and within institutions. Oneway to explain this relationships and its effect on implementation of institutionalactivities is the principal-agency theory holds that shirking is likely to occur when there issome disagreement between policy makers and the bureaucracy. Civilian political leaders(principals) delegate authority to the bureaucracy (agent) with the expectation that theagent does not move quickly enough to reflect the policy preferences of principal, thecommittee members could show their displeasure by cutting the funding of theinstitution. Leaders (the principals), through powers of appointment and the purse are inposition to influence bureaucratic outputs. Guy, (2004) found that politicians wieldconsiderable power in affecting bureaucratic outputs via the power of appointment.Calvert et al posits that the chief executive’s power of appointment and the threat oflegislative sanctions influence bureaucratic output. In the Kenyan situation, there are some basic statutory requirements which must becomplied with by all public Institutions.Technical Training Institutes are subject to such. Under the Income Tax Act of Kenya Cap470, PAYE payments must be made on or before the 9thday following the month of thededuction. The annual PAYE returns must be submitted on or before the 15thFebruary, ofthe succeeding year.The Institutions are also subject to the provisions of the VAT Act, Cap 160, with respectto any transactions they may undertake with VAT registered suppliers. Where suchInstitutions operate business for income generation, they must get a VAT registrationcertificate.They are also required to comply with all the provisions of the factories safety Act ofKenya, with regard to any workshops and laboratories.The TTIs must also comply with all the provisions of the Public Procurement Act ofKenya, Cap. This Act outlines all the procedures to be followed in all procurementactivities for the Institutions. The Institutions must also submit all the statutory remissions and within the stipulatedtime. Such include NSSF, NHIF, and other deductions to the relevant Institutions.The implementations of the Performance Contracting Charter for TTIs have enshrined thecommitment to realise the compliance with all statutory obligations.26
2.5.4 Performance contracting and staff work environmentOne of the main services that an institution can provide to its employee, who are part ofthe internal customers, is a good and a conducive work environment. However, workingin a stressful environment can be detrimental to mental and physical health in both theshort- and the long-term. Poor levels of health are twice as high for those reporting highjob stress compared to those with none. Rates of work-related stress are higher amongwomen and in people working in large institutions, in managerial and professionaloccupations, and in public administration/health and social care/education (Siegrest JBenach J, McKnight A, Goldblatt P, Muntaner, 2010).