This paper is based on a study to establish public secondary schools head teachers’ perceptions towards implementation of performance contracts in Bureti, Kericho and Bomet districts in Kenya. The study sought to establish these perceptions based on: financial, human resource management, physical facilities and academic indicators of performances contract in schools. Quantifiable measurements were used to determine these indicators. Stratified random sampling was used to select 60% of the public schools in every district to participate. The study was based on Cole (1993) Job Improvement Plan Model, which emphasizes on setting standards in specific key result areas and specifying results for all managers at the operating level of the institution. Questionnaires in Likert type of scale were used to collect data and descriptive statistics were used to analyse the data. The results showed that head teachers did not reject implementation of performance contracts in totality. However, there were areas they were not comfortable being used as indicators in the performance contracting exercise. Therefore, it was recommended that the Ministry of Education should sensitize head teachers on the meaning, scope and importance of performance contracting exercise. Furthermore, initial piloting of performance contracting in a few schools before implementation should be done.