Privatisation and the performance of Southern Range Nyanza Limited

Abstract

This study set out to critically analyse the performance of Southern Range Nyanza Limited before and after the privatisation of the company. The study explored the performance of Southern Range Nyanza Limited in respect of the management practices of the company before and after privatisation looking at training, motivation and communication. The study also examined the production performance of the company before and after the privatisation process in the context of output, sales, profitability, exports and tax remittances. The study further sought views of the implementers of privatisation policy and the owners of SNRL on whether privatisation has enhanced performance of Southern Range Nyanza Limited For purposes of comparison the study considered eight years before Southern Range Nyanza Limited was privatised (1988-1995) and after it was privatised (1996-2003) in order to analyse the performance before and after privatisation. This was to establish whether there was a marked difference in performance before and after privatisation of Southern Range Nyanza Limited. The study used the longitudinal research design to establish patterns and trends of performance of Southern Range Nyanza Limited before and after privatisation. A longitudinal study is a time series study that spans across time. This study design helped to provide information about data variability and precision. Thus, observations of the outcome variables before and after privatisation provided a reliable picture of growth and trends in performance The study established that the management practices of Southern Range Nyanza Limited has not improved since its privatisation in terms of motivation, training and communication. The findings reveal that the management styles employed by the new management were draconian; employees of the company were found to be unhappy with the current management and this could easily affect the production performance of the company. The study further established that output in terms of sales and exports had improved. However, the study found out that the company’s profits had dipped and tax remittances fluctuated and eventually dipped through the years. The study established that the privatisation of NYTIL has not in any way improved the performance on the company. Instead government continued to provide it with subsidies in terms of Value Add Tax exemptions and award of non-competitive tenders to make Army, Police and Prisons uniforms. The study recommends that Southern Range Nyanza Limited develops highly skilled motivated and productive labour force to ensure sustained improvement in the company; that it remunerates employees with salaries commensurate with their input in order to retain them. The study further recommends the collection and maintenance of data on privatised enterprises for purposes of providing information to facilitate future impact assessments of the exercise should be made by government.