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Kenya Airways: A case study of privatization

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  • Samuel Oyieke

    (University of Eastern Africa Baraton)

Abstract

Various commissions and Kenya’s Comptroller and Auditor General consistently pointto the inefficiency and mismanagement of parastatals (state-owned enterprises).Consequently, their advice has been to divest and privatize.The main reasons advanced by the Kenyan government for embracing privatizationwere to reduce the fiscal burden, develop the private sector, broaden ownership of wealthand raise revenue for the cash-strapped government. As these goals are mutually exclusive,achieving them, especially in a poor country like Kenya, is problematic. This has madeprivatization a rather unpopular process in the country.Presenting a case for privatization requires documentary evidence of successfulprivatization. It is in this respect that Kenya Airways was selected as a case study. Thefindings of the study demonstrate clearly that successful privatization is possible. Thestudy concludes that privatization can achieve its objectives if conducted systematicallyand transparently. The support of the general public is possible in an atmosphere free ofsuspicion and with a free flow of information before and after privatization

Suggested Citation

  • Samuel Oyieke, 2002. "Kenya Airways: A case study of privatization," Working Papers 119, African Economic Research Consortium, Research Department.
    • Handle: RePEc:aer:wpaper:119
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    Cited by:

    1. Mai, Nhat Chi, 2022. "Privatization of Vietnam Airlines: A successful Reform or A Timid Policy Step," OSF Preprints duwym, Center for Open Science.
    2. Bilal Ahmed & Sadaf Alam, 2018. "Impact Of Privatisation On Financial Performance And Efficiency Of State Owned Enterprises," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(2), pages 14-13.
    3. , Aisdl, 2017. "Privatization of Vietnam Airlines: a successful reform or a timid policy step," OSF Preprints wknfq, Center for Open Science.
    4. Bilal Ahmed & Sadaf Alam, 2018. "Impact Of Privatisation On Financial Performance And Efficiency Of State Owned Enterprises," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(2), pages 158-173.

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