The Cabinet on Tuesday approved the Government-Owned Enterprises Bill, 2025 (GOE Bill), signaling a major shift in how Kenya’s commercial State corporations are run.
The approval, made during a Cabinet meeting chaired by President William Ruto at State House, Nairobi, sets the stage for sweeping reforms aimed at enhancing transparency, professionalism, and performance in government-owned entities.
The Bill introduces a new classification of commercial State corporations, now to be known as Government-Owned Enterprises (GOEs). It seeks to tackle systemic inefficiencies that have plagued the sector, such as political appointments and mismanagement, by establishing a structured, merit-based process for selecting top executives.
A key provision of the Bill is the creation of an independent selection panel to oversee appointments. In a move away from political influence, the Bill mandates that boards of these enterprises will elect their own chairpersons from among independent members, who must meet strict integrity and competence standards.
Additionally, the legislation explicitly bars any conflicts of interest, ensuring that both chairpersons and directors act in the best interest of the public and the enterprises they serve.
According to a Cabinet brief, the Bill is part of a broader national effort to modernize and professionalize the governance of State corporations, with the aim of restoring public confidence and enhancing the economic contribution of government assets.
If passed by Parliament, the GOE Bill, 2025, will represent a milestone in public sector reforms, focusing on commercial viability, accountability, and sustainable growth.
