The recommendations are contained in the Report of The Presidential Taskforce on Parastatal Reforms and The Government Policy on Management of Government Owned Entities. These were presented, approved and adopted by His Excellency The President on 12th October 2013. Subsequent to which, His Excellency the President constituted an Implementation Committee (IC) on 29th November 2013 chaired by the Chief of Staff and Head of Public Service.
The objectives of the Policy are to:
1. Improve governance and accountability framework for all actors;
2. Enhance efficiency and effectiveness of GOEs in the delivery of Vision 2030;
3. Align the legal framework for GOEs to the Constitution;
4. Establish a differentiated regulatory regime for the different classes of GOEs in accordance with operational requirements; and
5. Provide order and clarity in the establishment, merger and acquisitions, transfers of functions, dissolution and operations of GOEs.
Outcome Areas for the Implementation Committee:
1. Policy Direction;
2. National Sovereign Wealth Fund institutional Framework;
5. Strengthened Performance Management;
6. Procurement and Disposal Framework; and
7. State Oversight Capacity and Capability.
Progress by the Implemetation Committee
The Implementation Committee submitted the Government Owned Entities (GOE) Bill, 2014 and National Sovereign Wealth Fund Bill, 2014 to the Commission on Implementation of the Constitution (CIC). The Commission released the Bills to the public and stakeholders for review and comments on 16th May 2014. The CIC has received feedback and roundtable discussions are in progress to incorporate the views in the Bills.
The Government Owned Entities Bill, 2014, when enacted, will repeal the State Corporations Act Cap 446 and provide clear and consistent rules on definition, classification, ownership, oversight, accountability and governance of GOEs. The new framework will eliminate the current multiplicity of laws governing GOEs and reduce the burden of compliance with numerous existing legislations that are sometimes conflicting.
A Code of Governance for GOEs (Mwongozo) has been developed by the Implementation Committee, in conjunction with SCAC and the Institute of Certified Public Secretaries of Kenya (ICPSK) in consultation with World Bank. It is based on the Constitution of Kenya, 2010 and draws from OECD guidelines, King III Report on Corporate Governance, the Malaysian Code amongst others. It provides a framework embodying Board charters, Codes of conduct, professional ethics, and performance management.
The Code addresses matters of effectiveness of Boards, transparency and disclosure, accountability, risk management, internal controls, ethical leadership and good corporate citizenship. It further provides a platform for addressing shareholder rights and obligations and ensuring more effective engagement with stakeholders. More importantly, MWONGOZO will ensure that sustainability, performance and excellence become the hallmark of our Government
Owned Entities (GOEs).