June 18, 2024

Ruto issues Executive Order on the management of state corporations

3 min read
Ruto issues Executive Order on the management of state corporations

President William Ruto has issued an executive order on guidelines for the management of State corporations

President William Ruto has issued an executive order on guidelines for the management of State corporations. 

In a gazette notice dated May 24, Ruto ordered that the terms and conditions of service for Board Members and Staff of State Corporations shall be as set out in the 2024 Guidelines on the Management of State Corporations (May 2024). 

Ruto also ordered that the 2024 Guidelines on the Management of State Corporations shall and do supersede the Guidelines issued in November 2004. 

“I do hereby direct all Boards of State Corporations to secure the immediate implementation of the 2024 Guidelines on the Management of State Corporations (May 2024),” he said. 

The revised guidelines will provide salary bands and allowances for CEOs, board members, vice Chancellors, Chancellors, and members of University councils.

The Salaries and Remunerations Commission and the State Corporations Advisory Committee will be key players in determining the terms and conditions for State corporations.

The guidelines also provide a new standard for the governance and ethical behaviour of board members and staff of State corporations.

The head of state-directed that all Cabinet Secretaries secure the full implementation of his Executive Order.

Ruto acknowledged that state corporations play a dynamic role in enabling the socioeconomic development of the nation. 

He said the effective and accountable governance and management of State Corporations is vital to fully unlocking their contribution to the national development agenda. 

Ruto noted that in November 2004, the government issued guidelines on the terms and conditions of service for the Chairperson, Members of the Board, and Chief Executive Officers of State Corporations. 

In a bid to enhance service delivery and in response to the ever-changing operating environment, emerging needs and challenges, as well as global trends; Ruto said it had become necessary to review the 2004 Guidelines in keeping with international best practices. 

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The President said the proposed revisions seek to promote efficient, effective, and prudent use of public resources, fiscal sustainability and performance of State Corporations while also fostering productivity at both the agency and the individual staff level.

This is by providing an objective mechanism for evaluating performance, rewarding success, and sanctioning poor performance. 

“The revised Guidelines do not replace the Mwongozo Code of Governance for State Corporations, but rather seek to augment the provisions of the Mwongozo Code and ensure that lessons learnt during its implementation are infused into the management of the sector,” he said.

Ruto said the 2024 guidelines have been prepared in consultation with, and have received the concurrence and approval of, all key stakeholders, including the Public Service Commission (PSC) and the Salaries and Remuneration Commission (SRC).

He said it received the grant of approval from the nation’s apex policy-making organ, Cabinet, on April 23, 2024.

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