The Effect of Privatization on Firm Financial Performance in Kenya
Abstract
This study aimed at establishing the effect of privatization on firm financial performance
in Kenya. The study was based on the financial reports of six firms which were
privatized within the period 1991 and 2008. The analyses covered a period of three years
before and after privatization for each of the firm, and the mean and standard deviation
on returns on turnover, total assets and equity were the key statistics performed on the
data from those firms. The study found out that the firms improved their performance
after privatization. The Government should therefore move away from pursing
commercial activities and instead concentrate in activities such as provision of services
and creating the legal and institutional framework conducive to increased private
investment.