The State Corporations (Amendment) Bill, 2026
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
Three-Year Term Caps on State Corporation CEOs
Amends Section 6 of the State Corporations Act (Cap. 446) to introduce a new subsection (2A). This requires chief executives to serve for a fixed term of three years, with the option for renewal for only one further term.
Safe Harbor for Active Chief Executives
Section 3(1) establishes that individuals actively serving as chief executives on the commencement date of the Act shall continue to serve for the unexpired portion of their current terms under their existing terms and conditions.
Clarified Process for Early Removal
Section 3(2) ensures that the transitional provisions do not prevent the removal of a chief executive before their term expires, provided there is just cause and the process complies with the Fair Administrative Action Act (Cap. 7L) and the Employment Act (Cap. 226).
Bill No.
No. 58 of 2026
Gazette No.
Supplement No. 212 of 2026
Sponsor
George Kariuki
Background
The primary objective of the State Corporations (Amendment) Bill, 2026 is to establish a clear and uniform framework on the tenure of chief executive officers (CEOs) of State Corporations in Kenya. Currently, the lack of a uniform statutory tenure has resulted in challenges such as arbitrary extensions of office, disputes, and litigation. The Bill aims to promote certainty, predictability, and consistency in leadership transitions, aligning with principles of corporate governance under the Constitution of Kenya, 2010, and the Mwongozo Code of Governance for State Corporations (2015).
Key Amendments
Amending Section 6 of Cap. 446
- The Bill inserts a new subsection (2A) immediately after subsection (2).
- Under the new subsection, any chief executive appointed under subsection (1)(b) must serve for a term of three years, which is renewable for only one further term.
Transitional Provisions
Protection of Current Contracts
- A person serving as a chief executive when the Act comes into effect will continue to serve for the unexpired period of their term under their current contract terms and conditions.
Removal for Just Cause
- The Bill explicitly states that the transitional protections do not prevent the early removal of a chief executive for just cause.
- Any early removal must comply with the provisions of the Fair Administrative Action Act (Cap. 7L), the Employment Act (Cap. 226), and any other applicable written laws.
Gazettement
The State Corporations (Amendment) Bill, 2026, sponsored by the Chairperson of the Departmental Committee on Transport and Infrastructure, was published in Kenya Gazette No. 212 and is scheduled to mature on 1 September 2026.
Gazettement
The State Corporations (Amendment) Bill, 2026, sponsored by the Chairperson of the Departmental Committee on Transport and Infrastructure, was published in Kenya Gazette No. 212 and is scheduled to mature on 1 September 2026.