Abstract: This paper presents results of the influence of Monitoring and Evaluation (M&E) skills on the relationship between Performance Contracting (PC) system and organizational performance in government ministries in Kenya. Descriptive survey design and correlational research designs were used in a mixed methods research approach. Quantitative data was collected through a questionnaire while qualitative data was collected through an interview guide. Research instruments were pilot tested for validity through content related method and reliability through test-retest criterion. A sample size of 310 respondents was selected by use of Sekaran’s (2003) sampling size criterion from a population of 103,010 employees in government ministries through multi-stage sampling technique. Arithmetic mean and standard deviation were used for analyzing descriptive data while Pearson Product Moment Correlation (r) and Stepwise Regression (R2) analysis were used for analyzing inferential data. F-tests were used to test the hypothesis in the study. Tests of statistical assumptions were carried out before data analysis to avoid invalidation of statistical analysis. With R2 = 0.14, F (3,177) = 9.588 at p < 0.05, the null hypothesis was rejected and it was concluded that the strength of the relationship between PC system and organizational performance depends on M&E skills. Monitoring and Evaluation skills, therefore, moderate the relationship between PC system and organizational performance in government ministries in Kenya. It is recommended that implementers of PC system in government ministries in Kenya should be equipped with M&E skills.