Cabinet approves Bill to end political patronage in state agencies through merit-based appointments
The Bill, titled the Government-Owned Enterprises Bill, 2025, proposes the establishment of structured governance where board members are selected through a competitive and transparent process.
The Cabinet has approved a Bill seeking to reform state corporation leadership by replacing political patronage with merit-based appointments.
The Bill, titled the Government-Owned Enterprises Bill, 2025, proposes the establishment of structured governance where board members are selected through a competitive and transparent process.
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The reform comes following a meeting chaired by President William Ruto at State House, Nairobi, where members endorsed the Bill, marking a significant step towards overhauling the governance and performance of commercial State corporations.
According to a dispatch from the Cabinet, the proposed law creates a new category of commercial State corporations to be referred to as Government-Owned Enterprises (GOEs).
Merit-based selection
To curb inefficiencies and promote professionalism, the Bill proposes a merit-based selection system overseen by an independent panel to end the appointment of unqualified board members based on political ties.
In a major shift from past practices, the Bill provides that the board will elect its own chairperson from among the independent members. It further bars both the chairperson and independent directors from engaging in any activities that may result in a conflict of interest.
The Cabinet said the proposed reforms are designed to promote professionalism, transparency, and commercial viability in the management of public enterprises.
“These reforms are part of a broader national effort to modernise and professionalise State-owned enterprises, improve economic efficiency, and restore public trust in public asset management,” the Cabinet said.
The Government-Owned Enterprises Bill, 2025, is expected to be tabled in Parliament for debate and approval in the coming weeks.
Public procurement systems
The Cabinet also approved the Public Procurement and Asset Disposal (Amendment) Bill, 2025, which seeks to modernise public procurement systems.
The Bill makes electronic procurement mandatory across all government entities, a move intended to curb corruption, enhance transparency, and expand access for local and disadvantaged groups, including women, youth, and persons with disabilities.
The Cabinet also adopted the National Policy on the Prevention of Alcohol, Drugs and Substance Use (2025), which aims to strengthen the mandate of the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA). The policy proposes stricter regulations on alcohol advertising and access, while outlining a multi-sectoral approach to prevention, rehabilitation, and public awareness campaigns.
Further, the Cabinet endorsed the Higher Education, Science and Technology Phase II Project, which is expected to boost science, technology, engineering and mathematics (STEM) training and research in Kenya.
The initiative will focus on upgrading university laboratories, establishing a science and technology park, and promoting innovation. It also aims to increase postgraduate STEM opportunities, especially for women and youth, while supporting maritime training courses to enhance skills development in the blue economy.
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