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Cabinet endorses lockout of quacks in State-owned firms
Most of the corporations have been crippled by inefficiencies ranging from procurement problems, political influence in the hiring and firing of their top leadership, workforce issues and pending bills,
The Cabinet has proposed major changes in qualifications of those seeking leadership positions at commercial State corporations, aiming to weed out incompetent persons hired through political patronage.
The Cabinet on Tuesday approved the Government Owned Enterprises Bill, 2025 (GOE Bill, 2025), which proposes to establish a new category of commercial State corporations where appointment of chairpersons and senior management will be “merit-based”.
The Bill does not, however, specify qualifications for the top managers of State-owned firms.
The entities have their own internal qualifications standards but which are sometimes overlooked when hiring senior managers.
“The Bill establishes a new category of commercial State corporations, now termed government owned enterprises. It aims to address longstanding inefficiencies such as the appointment of unqualified individuals to leadership roles by introducing a structured, merit-based selection process overseen by an independent panel,” the Cabinet said.
While terming the move a step in reforming governance and performance of commercial State corporations, the cabinet said merit-based appointment of senior leadership in the corporations would “modernise and professionalise” them.
Appointment of chairpersons and CEOs of leading commercial State corporations have historically been held hostage by politicians, with each administration pushing out most of the leaders they find to appoint their own.
Among changes introduced is a requirement that a State corporation’s board will elect its chairperson from among the independent members.
“These reforms are part of a broader national effort to modernise and professionalise State-owned enterprises, improve economic efficiency, and restore public trust in public asset management,” the Cabinet said.
It was, however, not clear in the information from Cabinet, the number or specific corporations that will be affected.
Commercial state corporations include Kenya Power, Kenya Ports Authority, Kenya Pipeline Company, Kenya Railways Corporation, Kenya Airports Authority and Kenya Electricity Generating Company (KenGen).
They are categorised as commercial because by nature of their operation, they earn money for the government from the activities they conduct most of the commercial State corporations play a strategic role in the economy, by ensuring security and sustainability in sectors such as energy, trade and transport.
Most of the corporations have, however, been crippled by inefficiencies ranging from procurement problems, political influence in the hiring and firing of their top leadership, workforce issues and pending bills, where they have been unable to pay suppliers.
“The Bill explicitly prohibits conflicts of interest for both the chairperson and independent directors, promoting professionalism, transparency, and commercial viability,” the Cabinet said.
