‘THE PRESIDENCY
EXECUTIVE OFFICE OF THE PRESIDENT
EAD OF THE PUBLIC SERVICE
Pes hi STATE HOUSE
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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
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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 SERVICEoemics 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