EDITORIAL: GDC uncertainty wrong

The uncertainty hanging over the fate of Geothermal Development Company (GDC) managing director Johnson ole Nchoe is a symptom of a problem in the management of State corporations.

Mr Nchoe's term at the helm of the corporation expires today, but there is still no official word on what will happen next – either a renewal of his contract or the search for a new MD.

The lack of communication signifies a disregard for planning, corporate governance and the importance of continuity at the government-owned corporation.

And while there are political considerations that are often made during the appointment of parastatal chiefs, the fact is that lack of planning impedes the ability of the companies to perform effectively and manage their succession efficiently.

Many times in the recent past, government agencies have had no substantive heads. This is not the proper way that a State corporation ought to function; those tasked with hiring should be decisive enough to appoint the right managers who would be confirmed so that they are able to execute their duties effectively.

The government should also be transparent in the appointments – for the State corporations exist to serve Kenyans first, and not just take care of the interests of those in authority.

Acting managers in such cases are often constrained from performing their duties freely since they do not have unfettered mandate. There are even cases where acting heads have stayed in that role in a parastatal for years and in other instances an acting manager is replaced by another acting manager.

Some of those in acting capacities could be playing other roles, effectively setting them up for underperformance.