Ruto Announces Reforms In State Corporations’ Appointments
President William Ruto has indicated that the government will make significant management reforms to the appointment and administration of state-owned companies (SOEs).
This is intended to streamline processes while reducing the danger of political involvement in corporate decision-making.
On Tuesday, February 10, during the introduction of one of Kenya’s premier telecom products at the Nairobi Securities Exchange (NSE) in Westlands, the President revealed plans to give the private sector a larger role in managing state enterprises.
Currently, the government alone has the right to designate boards of state-owned companies (SOEs).
President Ruto: The entire board of Kenya Re and KenGen is appointed by the government. This week, that is going to change. The private sector is going to be part of the board members so that they can participate in growing the company. pic.twitter.com/fwYGJSuVXM
— NTV Kenya (@ntvkenya) February 10, 2026
However, the proposed approach would provide private sector players a say in determining board appointments and ensuring their representation matches their shareholding.
The President identified Kenya Re and KENGEN as direct beneficiaries of the reforms.
Kenya Re, or Kenya Reinsurance Corporation, is the country’s major reinsurance firm, offering risk management and reinsurance solutions throughout Africa.
KENGEN, on the other hand, is in charge of providing power for Kenya’s national grid and will implement comparable reforms as the Kenya Pipeline.
The latter is now undergoing an initial public offering (IPO), with the government selling approximately 65 percent of its shares to the public as part of a partial privatisation and listing on the Nairobi Securities Exchange.
The offer window runs for one month, from January 19 to February 19, 2026, with the IPO projected to raise Ksh106 billion in support of the government’s broader privatisation drive.
Ruto said the Treasury, led by CS John Mbadi, has been tasked to develop clear guidelines that will ensure private shareholders can participate in board appointments, reflecting their investment stakes.
“We will be doing what we did with Kenya Pipeline, and now we will extend this to KENGEN and Kenya Re,” the President said.
“Currently, the entire board is appointed by the government. Going forward, we will allow private shareholders to appoint board members according to their ownership.”
The reforms are intended to empower those financing the parastatals to have a meaningful say in the management of these companies, aligning decision-making with financial responsibility, according to the government.
ALSO READ:
- Activist Mwabili Mwagodi Arraigned Over Suspected Social Media Posts
- “Audit Them Comprehensively!” – MPs Demand After Russian Man Saga
- DCI Breaks Silence On Russian Man Who Explicitly Filmed Kenyan Women
- “That Is Misleading!” – Ruto Blasts Murkomen, Ogamba Over Graduation Attire
- Speaker Wetangula Kicks Out MP Kibagendi Over ‘Demeaning’ TV Interview
“The problem we have had,” Ruto added, “is the practice of recycling old politicians who often have little expertise in the sectors they are appointed to oversee. This must change.”
The President emphasised that these steps will professionalise state enterprises, making them more efficient, transparent, and accountable, while protecting them from unnecessary political interference.
He also clarified that strategic funds such as the National Infrastructure Fund and the Sovereign Wealth Fund will remain insulated from political influence.
Ruto also vowed to ensure that management is handled by experts rather than political appointees.
Ruto Announces Reforms In State Corporations’ Appointments
