President William Ruto has announced the retirement of about 250 board members serving across 66 state corporations, following the full implementation of the Government-Owned Enterprises (GoE) Act. The announcement was made on Thursday, July 16, during the launch of consultations for Kenya’s inaugural State of Openness Report in Nairobi.
According to the President, the new law introduces sweeping reforms designed to professionalise leadership in state agencies by opening board positions to competitive recruitment rather than political appointment.
“Last year, we passed the Government-Owned Enterprises law, and as a result, boards of 66 commercial state corporations have retired close to 250 members so that we can competitively recruit professionals,” Ruto said.
Politicians Locked Out of Boards for Half a Decade
A central provision of the Act bars anyone who has held political office from serving on a parastatal board until at least five years after leaving that office. Ruto said the measure is intended to curb political interference in the management of state enterprises and strengthen accountability in public institutions.
He commended Parliament for passing the legislation, describing it as a foundation for a more transparent, merit-based system of managing state corporations going forward.
The reforms have already set off a major restructuring drive, with the government now recruiting qualified professionals to head strategic institutions, among them KenGen and the Kenya Airports Authority (KAA).
“We are now recruiting professionals to run KenGen, KAA, and many other institutions to introduce openness and strengthen independent oversight,” Ruto added.
Conflict of Interest Law and eCitizen Directive Reinforce Transparency Push
The President also pointed to the recently enacted Conflict of Interest law, which subjects transactions involving public officials to stricter scrutiny. He acknowledged that the law took longer than expected to pass because of its stringent transparency requirements, but insisted it remains essential to promoting integrity in public service.
In the same address, Ruto directed all government institutions that have not yet integrated with the eCitizen single-pay system to do so without further delay, as part of the administration’s broader push for efficiency and transparency in revenue collection.
Taken together, the reforms mark one of the most significant governance shake-ups in state corporations in recent years, aiming to reduce political capture of public institutions, improve service delivery, and restore public confidence in how state enterprises are run.
