NAIROBI, Kenya – President William Ruto has announced that the government will start allowing private sector investors to nominate board members in state-linked companies, including KenGen and Kenya Re. The move is part of broader corporate governance and capital markets reforms aimed at attracting private investment and improving accountability in public enterprises.
Speaking during the launch of Safaricom’s Zidi Trader App, President Ruto said the reform addresses long-standing governance gaps in companies where boards have traditionally been fully appointed by the government, despite private shareholders’ investments.
“Wherever we have private sector ownership, they should be represented in the boards to the extent of their ownership,” Ruto said, noting that the new framework will let investors play a more active role beyond providing capital.
The President emphasized that the reforms aim to end politically driven appointments, which have historically weakened performance and investor confidence in some state-linked firms. To ensure professional governance, newly established public funds, including the National Infrastructure Fund and the Sovereign Wealth Fund, will be protected from political influence. Politicians and recent public servants will be barred from managing or sitting on these boards.
A mandatory five-year cooling-off period will also apply to former public officials before they can be considered for board appointments, further professionalizing governance in strategic institutions.
Historically, appointments to boards of state corporations in Kenya have often been used to reward political allies or supporters rather than based on expertise or merit. Recent legislation, including the Government-Owned Enterprises Bill (2025), seeks to tighten board appointments by prioritizing professionalism, transparency, and merit, while barring individuals affiliated with political parties in the previous five years from serving as directors.
The move is seen as part of a wider strategy to restore confidence in Kenya’s corporate governance framework, deepen capital markets, and attract long-term private investment into public enterprises.
