The Impact of Privatizing Public Enterprises On the Contribution of Government Revenue.

ABSTRACT The study, "the impact of privatizing public owned enterprises on government revenue" targeted KenGen Ltd which is a power producing company in Kenya. The working definition for privatization in this paper is the process of handing over of elements of the public service to the private sector as instituted by the government machinery. The researcher has introduced the study by discussing the adoption of Millennium Development Goals and the plans for Vision 2030 which were -blueprints to the economic growth and development by the Government of Kenya. The main objectives of the study were; to determine the role of IMF and World Bank in the privatization of KenGen, to examine the grass root impact of the privatization on the shareholders of the corporation and investigating the government's benefits following KenGen's privatization. The study adopted a qualitative method of research. A qualitative research design was used to review the impact of privatization of government enterprises on the revenue generated by the government of Kenya. The researcher used simple random sampling in order to select records of review. This is because the method minimizes bias in the sampling process. The study population entailed ten KenGen shareholders with an emphasis on the relationship between the investment in KenGen and the effect it has on the revenue base of the government of Kenya. From the study findings, it was revealed that the successful sale of shares through the KenGen IPO was a clear indication that the Kenya public is ready to play a more active role in the running of its resources. It also provided an avenue for transparency in public enterprises to the Kenya people who for long time have wondered what happens to all the funds injected into the parastatals yet they are run down and never seem to deliver the expected services to the public.