ABSTRACT 

The study was aimed at examining the perceived effects of privatization on service delivery in Lira Municipality. The objectives of the study were; to establish the effects of privatization on service delivery in Lira Municipality, to identify the challenges faced by privatization on service delivery and to assess the solution to the challenges facing decentralization on service delivery in Lira Municipality. The researcher used an explanatory type of research where the major aim was to establish the relationship between privatization and service delivery. Both quantitative and qualitative research design were used to obtain information. Also, the researcher employed descriptive research design to describe the phenomenon as it exists, comparative research design to compare privatization and service delivery in lira municipality, cross sectional research design to get the causal effect and the relationship between privatization and service delivery. The study took place at Lira Municipality. The area was purposely selected because of its’ convenient location and also bears the necessary and required study elements. The study population involved 60 participants where 14 district health officers, 15 top local government officers, 14 Lira Municipality officers and local peasants who will be available. The results obtained in table I above revealed that most respondents were females as opposed to their male counterparts. According to the findings of the study (40%) of respondents therefore were males while (60%) were females. The females comprise the larger number of the staff and males form the base of the administration. All in all, both male and female respondents contributed well to the study by providing relevant data as they seemed well conversant with the issues raised for the study and the operations in Lira Iunicipality. It was concluded that privatization became a more dominant trend in the privatized companies and has often been characterized as part of wave of neoliberal policies. The findings revealed that Privatized companies is entirely owned by private investors of foreign origin such as Great Britain. Partial privatization may lead to improvements in firm performance if the managerial view of privatization holds. The study recommended that privatization process should be carried out in such a way that such large scale multi-national commercial Company’s benefit the Ugandan and local communities in terms of better services, employment and corporate social responsibility