For years, boardroom decisions at some of Kenya’s most strategic State linked corporations have quietly shaped the country’s economic direction.
From energy generation to reinsurance, these institutions sit at the heart of national development, yet their leadership structures have often remained outside public scrutiny. That reality is now facing renewed attention.
President William Ruto has announced a significant policy shift targeting the governance of key State backed firms, starting with Kenya Reinsurance Corporation (Kenya Re) and Kenya Electricity Generating Company (KenGen).
Speaking this week, the President revealed that the long standing practice of exclusive government appointment of board members is set to change.
According to President Ruto, the entire boards of Kenya Re and KenGen have historically been appointed by the government, a system he said limits innovation, competitiveness, and accountability.
He stated that beginning this week, the private sector will be included in the appointment of board members, marking a departure from full State control.
The President argued that bringing private sector players into the boardrooms is aimed at strengthening corporate governance and accelerating growth within the two firms.
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He said the move would allow professionals with industry experience, commercial insight, and global exposure to participate directly in shaping the strategic direction of the companies.
KenGen, which plays a central role in electricity generation, and Kenya Re, a major player in the regional reinsurance market, are seen as critical to Kenya’s economic stability and long term growth.
President Ruto emphasized that the inclusion of private sector representatives is not about relinquishing public ownership but about improving performance.
He noted that allowing non-State actors into leadership positions would help the companies operate on stronger commercial principles while remaining aligned with national development goals.
The announcement comes amid broader government efforts to reform State-owned enterprises, reduce inefficiencies, and ease the financial burden they place on the taxpayer.
The administration has repeatedly stated its intention to cut waste, enhance transparency, and make public institutions more self-sustaining.
Reactions to the proposal have been mixed. Supporters view it as a bold and necessary reform that could unlock value and attract investment.
Critics, however, caution that clear frameworks must be established to prevent conflicts of interest and ensure that public interests are protected.
If implemented effectively, the move could signal a new era of public-private collaboration in Kenya’s State corporations, redefining how some of the country’s most influential institutions are governed and grown.
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