An efficient procurement process serves as the cornerstone of manufacturing operations. However, procurement performance among manufacturing companies faces significant challenges, impeding their efficiency and competitiveness in the market. According to a survey by the Kenya Association of Manufacturers, manufacturing firms in Kenya cite procurement inefficiencies as a major obstacle to growth and profitability. One of the primary reasons for this poor performance stems from inadequate contract management practices. Therefore, the study sought to assess the effect of contract dispute resolution practices. The study was guided by game theory. The study adopted a descriptive research design. The study targeted 52 Nakuru County manufacturers. 52 supply chain managers from 52 Nakuru County manufacturing enterprises. Since the targeted population was manageable, the researcher used census technique to incorporate all 52 targeted respondents. The researcher collected primary data using structured questionnaires. The questionnaire incorporated closed items. The collected data was quantitative in nature. Quantitative data was analyzed through the aid of Statistical Package for Social Sciences version 25. Descriptive and inferential statistics was employed in the study to analyze quantitative data. Descriptive statistics involved the use of, mean and standard deviation. Inferential statistic involved the use of correlation and regression analysis. Data was presented in form of tables. The findings revealed that the Cronbach alpha value for all the variables was above 0.7 therefore the study concluded that the data collection instrument was reliable. The finding revealed that there is a strong positive correlation between contract dispute resolution practice and procurement performance (r=0.541; p<0.05). From the conclusion the study recommended that manufacturing companies should also develop robust contract dispute resolution. Clear procedures for dispute resolution, including arbitration and mediation processes, is essential for managing conflicts in a structured and fair manner.