Effect of Listing Government Owned Enterprises on Revenue Generation

Before reforms in the state owned enterprises, known as Parastatal, the Parastatal sector in Kenya covered over 150 enterprises involving a diverse range of activities from trade and commerce, a field-production and processing, manufacturing, insurance and utility services etc. Over 90% were commercial in nature and were already facing competition from the private sector. The enterprises were operating well below capacity utilization and contributed very little to gross domestic product (GDP). In addition, out of the national debt stock less than 25% was generated by public enterprises - worse still these debts were guaranteed by the government. This study adopted mainly a qualitative method of research. A qualitative research design was used to review literature on the impact of privatization of government enterprises on the revenue generated by the government of Kenya. Simple random sampling was used in order to select records of review. This is because the method minimizes bias in the sampling process to achieve reasonable precision given the constraints of the study.