The effects of privatization on financial performance of Parastatals in Kenya

Abstract

The purpose of this paper is to explore and review privatization impact on firms’ Performance in Kenya .The focus of this study will be on privatization of parastatals in Kenya and the effect that privatization has had on formerly state owned firms. The theoretical part of this study will provide few definitions for privatization, and it will clarify its common requirements and methods. The empirical part of this study was conducted by using a qualitative research method. The results were based on questionnaires administered to Senior Managers of Privatized Parastatals in Kenya. The aim of this Study was to find out whether indeed privatization improved financial performance of parastatals in general. The findings of this research showed a positive impact of privatization over firms’ performance and at the same time the research clarified the major and the most important factors of privatization that affected financial performance the most