Petition filed to nullify law restructuring 65 state corporations
A new law restructuring 65 State-owned enterprises in Kenya faces a court challenge, with petitioners arguing it centralises power in the National Treasury and sidelines Parliament and public oversight.
The recently signed law targeting 65 State-owned enterprises for restructuring and privatisation is facing court scrutiny, amid concerns that it bypasses Parliament and public participation guidelines.
The Centre for Litigation Trust (CLiT) has challenged the Government Owned Enterprises Act, arguing that it consolidates sweeping powers in the National Treasury and undermines constitutional checks on strategic national assets.
CLiT filed the case in the Constitutional and Human Rights Division, challenging the legislation signed by President William Ruto on November 21, 2025.
The law designates 65 State-owned enterprises for privatisation or restructuring, including the Kenya Literature Bureau, National Oil Corporation, Kenya Seed Company, Rivatex East Africa, Kenyatta International Convention Centre (KICC) and New Kenya Cooperative Creameries (New KCC).
While the government maintains that the reforms are intended to improve efficiency, reduce the public wage burden and align State corporations with commercial principles, CLiT argues that the law unlawfully centralises authority under the National Treasury, bypassing constitutional checks and sidelining Parliament and the public.
“The Act represents a radical shift from the State Corporations Act to a company-law model without transparency, meaningful public input, or adherence to constitutional safeguards,” CLiT said.
The petition names the Treasury Cabinet Secretary and Attorney General as respondents, highlighting that under the new framework, the Treasury CS holds exclusive authority to hold shares, appoint boards and executives, set strategic direction and oversee finances. CLiT contends that these powers erode parliamentary oversight mandated under Articles 95 and 96 of the Constitution.
The petition further notes that the law repeals or amends statutes governing key entities such as the Kenya Ports Authority (KPA), Kenya Airports Authority (KAA) and Kenya Pipeline Company (KPC), giving the Treasury unilateral authority over restructuring, concessions, or sales.
“This centralisation enables Executive overreach, diminishing scrutiny over strategic assets,” CLiT warned.
“Parliament’s role in examining public debt, summoning officials, and representing citizens’ interests is effectively undermined.”
The petitioner is seeking a court declaration to nullify the law and suspend its implementation, arguing that it threatens public ownership and oversight of critical national assets.
The case is awaiting hearing directions, with respondents yet to file replies.
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