Vacuum looms at State agencies as board chairs exit

More than a dozen State agencies have been plunged into a leadership vacuum after the tenures of their board chairmen expired early this month.

The agencies, which include Consolidated Bank, Postbank, and Kenya National Bureau of Statistics (KNBS), cannot hold board meetings to make strategic decisions even as the New Year starts.

David Muturi, executive director at the Kenya Institute of Management, said the looming power vacuum reflects poor succession planning and weak corporate governance.

“It prevents the organisation from realising its goals. There is need to put in place transition mechanisms and provide opportunities for induction and handover,” he said.

Another similar fate has befallen a number of State-controlled firms whose chief executives remain on acting roles, limiting their ability to perform freely.

“Irregular things may happen during this period when there is a gap. Some may take advantage of the lacuna,” added Dr Muturi.

The list of State firms whose board chairpersons have completed three-year terms include Fred Kapondi (Postbank), Benson Ateng (Consolidated Bank), Terry Ryan (KNBS), Matu Wamae (New KCC) and Agnes Ndetei (National Drought Management Authority).

President Uhuru Kenyatta made the appointments through gazette notices published in December 2013, where he rewarded political cronies with plum jobs as chairpersons of key State agencies.

Others who have finished their tenures are conflict resolution expert Sam Kona (Kerio Valley Development Authority), former MP Edwin Yinda (ICT Authority), and businessman Sam Kairu Njonde (National Sports Fund). Kenya Broadcasting Corporation chairman Joseph Musebe ends his tenure on February 16.

Other retiring chairpersons are Kitambi Digore (Kenya Maritime Authority), Nakuru-based businessman Peter Kinya (Kenya National Trading Corporation) and Linah Jebii Kilimo at the Anti-Female Genital Mutilation Board.

The severity of the board leadership vacuum is underlined by the fact that most of the agencies involved are in key sectors of the economy such as banking, agriculture, and regional development; and are in the middle of implementing key strategies.

Postbank is seeking to convert into a commercial bank to be able to issue loans, while cash-strapped Consolidated is sourcing for an investor after key capital ratios fell further below regulatory requirements.

New KCC is firming up privatisation plans, where draft proposals show a third or 34 per cent of the dairy processor’s shares will be sold via a public offering at the Nairobi Securities Exchange.