MPs propose three-year term limit for state corporation CEOs

Members of Parliament have proposed amending the State Corporations Act to cap the tenure of CEOs and directors-general in all public entities at three years, renewable only once.

The National Assembly's Departmental Committee on Transport and Infrastructure argues that some directors currently enjoy five-year terms while others serve shorter stints, creating disparities in leadership appointments.

In a report endorsing the Kenya Roads (Amendment) Bill, 2025, the committee wants all State entities brought under a uniform term structure. Currently, while most parastatals offer their CEOs a three-year term renewable once, several institutions, particularly those in the roads sector, provide five-year renewable contracts.

Among those affected by the longer terms are heads of key roads agencies such as the Kenya National Highways Authority (KeNHA), Kenya Rural Roads Authority (KeRRA) and Kenya Urban Roads Authority (KURA).

“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 directors-general and CEOs in the various parastatals, State departments and agencies to cap it at a three (3) year term, renewable once,” reads the report.

The committee says the existing system has led to unequal treatment and created an imbalance across State corporations, with no clear rationale for the variance in tenure lengths.

The legislators argue that the proposed amendments will address longstanding concerns about inconsistent leadership terms and enhance accountability. They also hope the changes will limit political interference in appointments, a problem that has persisted in public service.

Besides competence, top appointments in State corporations are widely perceived to be influenced by political loyalty, with the government of the day often rewarding allies through strategic postings. Currently, Cabinet Secretaries in respective line ministries appoint CEOs and directors general, sometimes in consultation with the boards of affected institutions.

The committee’s recommendations also echo sentiments raised by former Head of Public Service Joseph Kinyua seven years ago. At the time, Kinyua pointed to the lack of clarity on CEOs’ terms as a source of confusion and legal disputes in the management of State corporations.

If the proposals are enacted, the Committee maintains that they would not only streamline tenure policies across public institutions but also help address legal uncertainties and questions of fairness in high-level appointments.

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• National
• KeNHA
• Kenya National Highways Authority
• State Corporations
• KURA
• Kenya Urban Roads Authority
• Kenya Rural Roads Authority
• KERRA
• road agencies
• State Corporations Act
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