The Cabinet, chaired by President William Ruto, on Tuesday approved the Government-Owned Enterprises Bill, 2025 (GOE Bill, 2025).
In a communique from State House, the bill marks a significant step in reforming the governance and performance of commercial State corporations.
“Cabinet met on Tuesday under the chairmanship of President William Ruto at State House, Nairobi, and approved the Government-Owned Enterprises Bill, 2025 (GOE Bill, 2025), marking a significant step in reforming the governance and performance of commercial State corporations in Kenya,” read the statement in part.
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 board will elect its chairperson from among the independent members. The Bill explicitly prohibits conflicts of interest for both the chairperson and independent directors, promoting professionalism, transparency, and commercial viability.
According to the Cabinet, the 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.
At the same time, the Cabinet endorsed the Affordable Housing Regulations, 2024, to operationalise the Affordable Housing Programme, a key pillar of the Bottom-Up Economic Transformation Agenda.
These regulations provide the legal framework for expanding access to decent, affordable housing for Kenyans.
The Cabinet also approved the Public Procurement and Asset Disposal (Amendment) Bill, 2025, which seeks to streamline public sector procurement and disposal processes.
The Bill updates the 2015 Act to reflect international best practices and insights gained over nearly a decade of implementation.
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