Cabinet Statement on Establishment of Government Owned Enterprises

Cabinet met on Tuesday under the chairmanship of President William Ruto at State House, Nairobi and approved the Government-Owned Enterprises Bill, 2025 (GOE Bill, 2025), marking a significant step in reforming the governance and performance of commercial State corporations in Kenya.

The Bill establishes a new category of commercial State corporations, now termed Government Owned Enterprises. It aims to address longstanding inefficiencies such as the appointment of unqualified individuals to leadership roles by introducing a structured, merit-based selection process overseen by an independent panel.

The board will elect its chairperson from among the independent members. The Bill explicitly prohibits conflicts of interest for both the chairperson and independent directors, promoting professionalism, transparency, and commercial viability.

These reforms are part of a broader national effort to modernise and professionalise State-owned enterprises, improve economic efficiency, and restore public trust in public asset management.

The Cabinet also approved the proposed dualling of the 20.2km Nairobi Northern Bypass, a key infrastructure upgrade aimed at easing traffic congestion and expanding the road's capacity to handle growing traffic volumes.

The project will convert the current single carriageway into a dual carriageway and include the construction of eight interchanges, overpasses, and underpasses, as well as the development of non-motorised transport facilities, including walkways and cycle paths, improved drainage systems, and enhancements to adjacent roads.