GOVERNMENT OWNERSHIP AND FINANCIAL PERFORMANCE OF STATE ENTERPRISES: KENYAN PERSPECTIVE

Abstract

The primary aim of this study was to investigate the relationship between government ownership and the
financial performance of state enterprises in Kenya. To achieve this objective, a positivist philosophy was
adopted, and a longitudinal research design was employed. The study population consisted of 62 state
enterprises, and secondary data was utilized for analysis. Both descriptive and inferential statistics were
employed, with regression analysis being the primary method for testing the hypotheses and other relevant
statistical tests. The hypothesis under consideration stated that there is no significant influence of
government ownership on the financial performance of state enterprises in Kenya. However, the study
findings revealed a positive and statistically significant influence of government ownership on financial
performance. These findings are expected to provide valuable insights for managerial practitioners in state
enterprises, enabling them to understand the integration of various financial performance factors amidst a
challenging economic environment and to effectively manage the core processes of their firms to promote
investor confidence in the country.
Key words: Government ownership, financial performance, state enterprises in Kenya.