The management of public enterprises in Kenya:With special reference to Kenya Meat Commission (1977-1987)

Abstract

Public enterprise is a common feature of many economies throughout the world. It is a formula that has been applied in capitalist, socialist and mixed economies. The case of developing countries reveals that, after the euphoria of political independence, the exigencies of economic independence called for increased state intervention in public enterprises through which the nationals would control the economy. In both the developed and developing countries, Kenya included, this intervention has been motivated by practical necessity, economic development, defence and strategic considerations, and political philosophy. However, in Kenya, like in other parts of the World, public enterprises are generally inefficient and unprofitable, and have therefore to rely on Government subsidy to keep them operating. This thesis examines the management of public enterprises i~ Kenya with specific reference to Kenya Meat Commission. It identifies the major reasons for the inept performance of public enterprises and suggests that divestiture might be a good and "final" managerial solution to the problem. On Kenya Meat Commission, the study looks at the management structure and the management functions vis-a-vis its performance. The conclusion is that, apart from the general explanations identified as causing poor public enterprise performance, the failure of the Commission's Management to observe the principal management functions led to its undoing. The thesis therefore points out that, the Commission, as is the current World trend with public enterprises, should either be liquidated or privatised for better performance. The divestiture would also save the economy the burden of supporting a nonviable public enterprise