An Analysis of the Financial and Operating Performance of the Newly Privatised Enterprises in Kenya

Abstract

Privatization of state - owned enterprises emerged as a major policy option in dealing with the public sector problem facing developing countries. One of the challenges of economic development has been how deal with the bloated and inefficient public sector. Most state-owned enterprises, in the e countries have made huge losses and have to rely on government support- leading to chronic budgetary constraints. Privatization has been advocated by the World Bank and IMF. As a result, hundreds of state owned enterprises have been transferred to private hands. In Kenya over 140 state owned enterprises have been divested in the hope that the private sector should serve as the 'engine of growth for the economy. Privatization of state - owned enterprises emerged as a major policy option in dealing with the public sector problem facing developing countries. One of the challenges of economic development has been how deal with the bloated and inefficient public sector. Most state-owned enterprises, in the e countries have made huge losses and have to rely on government support- leading to chronic budgetary constraints. Privatization has been advocated by the World Bank and IMF. As a result, hundreds of state owned enterprises have been transferred to private hands. In Kenya over 140 state owned enterprises have been divested in the hope that the private sector should serve as the 'engine of growth for the economy...