Factors hindering the implementation of the privatization program in Kenya

Abstract

For the last 10 years or so, many Developing Countries have embarked on Public Sector Reforms aimed at making Public Enterprises profitable and shifting the responsibility for Production and delivery of products and services from the Public to the Private Sector. Privatization has become very important in many Governments and the IMF and World Bank has been in the forefront in the support of Privatization in many developing countries. This study therefore endeavored to establish what factors have hindered the Implementation of the Privatization program in Kenya. The Research Methodology was based on Systematic Sampling method. Data was collected from both Primary and Secondary sources. Primary data was collected through Questionnaires and Secondary sources included the Treasury, Journals, Textbooks and Company Annual Reports. The Findings were that the Privatization Program in Kenya is slow. Many factors were sighted as contributing to this slow pace. They included Lack of proper Guidelines to the process, political interference, lack of Equal playing field in the bidding process, Undeveloped Capital Markets, Conflicts by the Officials involved in the process with the bidders and lack of Government Commitment. Out of all the above factors, 80% of the respondents sighted Political Interference has the major factor contributing to the Privatization Process in Kenya being slow