Economy

Retirement age rule to send home more parastatal chiefs

kobia

PSC chairperson Margaret Kobia. PHOTO | FILE

A wave of anxiety is sweeping through the C-suites of a number of State agencies after the Industrial Court ruled out extended terms for elderly chief executives.

Public Service Commission (PSC) has restated the ruling which has already cut short careers of two parastatal chiefs, adding that it has embarked on a process to compile data to determine the number of sexagenarian CEOs.

“Retirement age is 60 in public service. However, one can work on contract with approval of the board and cabinet secretary after 60 if they have specialised scarce skills,” PSC chairperson Margaret Kobia said in response to queries from Business Daily.

Industrial Court judge Nelson Abuodha had in November issued orders stopping the renewal of Kenya Power CEO Ben Chumo’s term because he had hit the retirement age of 60, forcing him to exit the utility firm on January 4, 2017.

The aftershocks of the court ruling were felt a fortnight later when Energy Regulatory Commission (ERC) director-general Joe Ng’ang’a left office a fortnight later at the age 61, even though he had not finished his term.

READ: ERC boss Joseph Ng'ang'a exits eight months before his term expires

Among the grey-haired bosses heading State agencies are Ng’ang’a Munyu of Rural Electrification Authority, David Some (Commission for University Education), University of Nairobi vice- chancellor Peter Mulwa Mbithi and Albert Mugo of KenGen. Mr Munyu, who has more than three decades of experience in the energy industry, turns 60 this year given that he was born in 1957.

He has been at REA’s corner office since July 2013. REA board chairman Simon Gicharu did not respond to our queries on the succession planning strategy at the agency charged with lighting up Kenya’s last mile off-grid areas.

Gad Ouma, a commercial lawyer, said the Labour court ruling will reverberate across the public service and force boards to be more transparent in hiring parastatal bosses.

“The precedent is that anyone can move to court and challenge board appointments based on the 60-year rule. Boards now cannot act arbitrarily, and should embrace principle of public participation,” Mr Ouma said in an interview.

Prof Some turns 61 this year and his contract is due to expire on September 3, 2017.

Prof Mbithi of UoN was born on July 4, 1956 – meaning he clocked the retirement age of 60 last year. Mbithi began his term at UoN on January 6, 2015 for a five-year term renewable once.

KenGen’s board of directors on Jan 4, 2017 extended Mr Mugo’s term by one year, carefully wading through the legal landmine — given that he was born in 1957 and is due to hit the retirement age of 60 this year.

The rules on retirement age have locked out Communication Authority director-general Francis Wangusi from bidding for a second term as he turns 60 in 2019 when his first four-year tenure comes to an end.