CS Mbadi recommends professionals, not politicians for state corporation jobs
By Lucy Mumbi |
He instead said the roles should be given to qualified professionals who can improve the companies' efficiency and productivity to ensure better performance and accountability.
Treasury Cabinet Secretary John Mbadi has recommended that state corporations should not be run by politicians who fail to get elected.
Speaking on Thursday during the launch of Bond Market Reforms at the Nairobi Securities Exchange, Mbadi pointed out that government companies should not be treated as places to give jobs to politicians who lost elections.
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He instead said the roles should be given to qualified professionals who can improve the companies' efficiency and productivity to ensure better performance and accountability.
“We should move away from government-owned enterprises being a dumping ground for failed politicians,” Mbadi said.
He said the government is reforming the state-owned entities, known as commercial state corporations, to prevent the practice of appointing politicians who lost elections into leadership roles within these organisations.
This has been a common practice in the past, with many former politicians landing top positions in government-owned companies despite lacking the necessary qualifications or experience.
“The government is also undertaking governance reforms of government-owned enterprises. These reforms are based on the ownership policy for government-owned enterprises, which was approved by the Cabinet in November 2023,” he said.
This policy, according to Mbadi, creates a framework to improve how these government corporations are run, ensuring they follow the same standards of accountability and transparency as private sector companies.
The aim is to raise the performance of these enterprises, many of which are crucial to Kenya’s economy.
“A significant feature of this policy is that it seeks to put government-owned enterprises on a legal framework and standards of governance accountability and disclosure that are as close as possible to those that apply to private sector companies,” Mbadi said.
He reiterated that the government is dedicated to privatising state-owned enterprises, citing successes such as Safaricom and KCB Group as examples. He also stressed the need to harness private sector efficiencies to boost public investments.
Mbadi praised the introduction of the Hybrid Bond Market, noting that it provides broader access to capital for Kenya's economic growth while avoiding an increase in the country’s debt.
He also praised the launch of the Nairobi Securities Exchange’s real-time Daily Yield Curve, describing it as a crucial tool for evaluating interest rates and guiding investment strategies.
According to Mbadi, this development will enable investors to make more informed decisions and enhance Kenya's capital markets.
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