Can a county government (Kisumu) establish a private company through which it conducts

business?

1. County Governments Act No 17 of 2012

Section 6

Powers of county governments:

(5) To ensure efficiency in the delivery of service or carrying out of a function for which the
county government is responsible, the county government may—

(a) establish a company, firm or other body for the delivery of a particular service or carrying on
of a particular function; or

(b) contract any person, company, firm or other body for the delivery of a particular service or
carrying on a particular function.

2. Public Finance Management Act 2012

Section 182

Establishment and dissolution of county corporations:

(1) A County corporation may be established or dissolved only with the prior approval of the
County Executive Committee, which may be given only after taking into account any
recommendations of the County Treasury regarding the financial implications of establishing or
dissolving the county corporation.

(2) The regulations shall prescribe the criteria to be used in establishing or dissolving county
corporations and the regulations shall be tabled in the county assembly for approval.

Kindly note that Section 2 (1) of the Act defines a county corporation as a “public corporation
within a county established by an Act of Parliament or county legislation”

3. Public Private Partnerships Act 2021

Section 68

Project Companies

(1) On the execution of a project agreement, the contracting authority and successful bidder
shall establish a project company in accordance with the Companies Act, 2015 (No. 17 of
2015) for the purpose of undertaking the project.

Kindly note that here, contracting authority refers to the county government or corporation.

4. The Kisumu County Investment and Development Corporation Bill, 2021

The Bill would serve to provide for the establishment of legal and institutional framework for
investment and development management and for connected purposes.
It would establish the Kisumu Investment and Development Corporation.

5. The Kisumu County Lakefront Development Corporation Bill, 2021

This is proposed to make provision for the establishment of Kisumu Lakefront Development
Corporation as a Special Purpose Vehicle (SPV), to develop and manage economic and social
activities of the lakefront, mobilise resources and for connected purposes.

(Been informed that it was passed by the county assembly).

6. The Kisumu County Lake Region Economic Bloc Bill, 2018

Section 5

(1) The Lake Region Economic Bloc shall have the capacity of a body corporate with perpetual
succession and shall have power to acquire, hold, manage, and dispose of land and other
property and to sue and be sued in its own name