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‘THE PRESIDENCY EXECUTIVE OFFICE OF THE PRESIDENT EAD OF THE PUBLIC SERVICE Pes hi STATE HOUSE Renee a ae 0a 50-0100 aio Koay secan_, OP/CAB.9/1A 27 February, 2018 All Cabinet Secretaries ‘The Attorney General All Principal Secretaries TERMS OF SERVICE FOR STATE CORFURATIONS CHIEF EXECUTIVE OFFICERS ‘The Government has noted a lack of clarity on terms of service for Chief Executive Officers of State Corporations and concems at service period, which has in some instances led to litigation, The appointment of Chief Executive Officers in State Corporations is guided by the general provisions of Section 5(8) of the State Corporations. et Cap. 446, the specific Acts of Parliament under which individual State Corporations are established, the Articles of Association for State Corporations established under the Companies Act Cap, 446 and the Regulations on the appointment of board of directors for public listed State Corporetions issued under Capital Markets Authority Cap. 485A. Section 6(2) of the Act provides that the Chief Executive Olficer shall be appointed for a renewable period of five (5) years or shorter period as may be specified in the notice of appointment. For avoidance of doubt, the Terms of Service for State Corporation Chief Executive Officers is centractual and renewable based on performance and business requirements, They are not subject to the general Public Service policy on mandatory retirement at 60 or 65 years or limit as to number of terms served, The Cireular No. OP.CAB.2/7A of 20° March, 2009 on Review of the Mandatory Retirement Age for Public Servants is, therefore, not applicable to State Corporations’ Chief Executive Officers. You are required to bring the contents of this circular to Boards of Directors of State Corporations in your docket and to ensure they have put in place a robust mechanism for measuring performance of Chief Executive Officers and leadership requirements over time, hehe JOSEPH K. KINYUA, EGH HEAD OF THE PUBLIC SERVICE Copy to: The Secretary State Corporations Oversight Authority NAIROBI. ‘TM PRESIDENCY EXBCUTIVE OMICH OP THE PRESIDENT (CHIEE OP STAM AND HEAD OF THR PUBLIC SRRVICE ro At ed eS amu “To hats sree ei Ro 0 OPFOR DA 8 Decomber, 2017 Prof, Gitim Muigat, BGR, Sc, Attorney-General Bigg Jaw Office and Department of Juan NAIROBI. . ear Sav, TERMS OF SeRVICE FoR stare conPoRaTiéns’ cur mgcurivE orricents ig, iim reference to your legal opinion on thy retirement age of pubile servants N. AG/MISC/2017 of 7 ApeA, 2017 Sean” Gonaidered your opinion and found it necessary to iasue a general GSmmeutr £9 clarify of terms and conditions af service for Chick Beene ‘draft circalar is attached, suru however not be prudent to issue the circular without cleaing with Teepettice 1 entire itis legally correct, This i therefore to request ow ts bok At the contents ofthe éraft and advice as appropriate ‘Yours STEPHEN K. KIROGO, CRs FOR: CHIKF OF STAW'AND HEAD OF THE PUBLIC SERVICE oemics oF rue arronny.cenifiay DEPARTMENT OF JUSTICE Your Ref: OP/CAB.9/ véth December 3077 (Our Ref. AG/CONF/2/C/31 VOL Dr-Joseph K Kinyun, EH Chief of Staff & Head of Publi Service State House NAIROBI RE: CIRCULAR ON THE TERMS OF SSERVICE FOR STATE CORPORATION'S CHIEF EXECUTIVE OFFICERS ——_______ Ts ahove mater and your ter dite th Daceriber 207 f which you have fowerded us the deat crcular.on the terms of service for state corporations chef executive oho ‘We have reviewed the tems ofthe crcular-nd eek 40 expound on the legal framework. on the appointment of the CED's a set out in paragrph 2 for purposes of dryset

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