The tenure of all chief executive officers and director-generals of State entities will be capped at three years, with the option of an extending it by a similar period if lawmakers push proposals to amend the law.
The National Assembly Departmental Committee on Transport and Infrastructure says that a Bill amending the State Corporations Act to standardise the tenure of these bosses at three years needs to be sponsored.
Currently, some CEOs and director-generals of State entities serve three-year terms, while others for five years, with the option of extending them once for the same period. The committee says that the current scenario has led to discrepancies and unfair treatment of the bosses.
Some of the State-owned entities that offer CEOs or director-generals a five-year term, renewable once, include road sector organisations such as the Kenya National Highways Authority, Kenya Rural Roads Authority and Kenya Urban Roads Authority. However, most State corporations, parastatals and agencies offer CEOs or director-generals a three-year term, renewable once.
“The committee identified the need to sponsor amendments to the following legislations: State Corporations Act, Cap. 446, to provide clarity on the term of service for all director-generals and chief executive officers in the various parastatals, State departments and agencies to cap it to a three (3) year term, renewable once,” the MPs say in a report.
This proposal was made in a report in which the committee backed the Kenya Roads (Amendment) Bill, 2025. The Bill seeks to reduce the term of office for director-generals of all State entities in the roads sector from five to three years.
Besides competence, appointees to these executive positions are largely seen as a means by which the government rewards political loyalty.
CEOs and director-generals of all public entities are appointed by the Cabinet Secretary of the line ministry. These appointments are sometimes made in consultation with the boards of the respective entities.
Seven years ago, the then head of the Public Service, Joseph Kinyua, had expressed concern about the lack of clarity on terms of service for CEOs of State corporations.
In a circular sent to the Attorney General, all Cabinet Secretaries and their Principal Secretaries in February 2018, Mr Kinyua stated that this had “in some instances led to litigation”.
The committee says that the lack of uniformity in the terms of office of bosses creates inconsistencies in governance structures within the public sector.
