Axe of CEOs to mark second phase of purge in parastatals after boards’ overhaul
The looming purge of Chief Executive Officers (CEOs) and Managing Directors (MDs) in parastatals, corporations and government owned agencies will mark the second phase key changes after a series of overhaul of board of directors and board chairpersons by president William Ruto.
The boards are responsible for policy guidance while the CEOs are in charge of administrative functions and accounting officers of the respective institutions.
Some of the boards that have seen delays in effecting changes in composition of their membership are multi-sectoral in nature with various members drawn from different sectors of the economy and nominated by respective professional bodies.
Among the key parastatals targeted include those controlling billions of shillings notably those under Energy, Agriculture, Roads and Transport, National Treasury, Mining, Maritime and Blue Economy among others.
“The second phase of these changes will target the CEOs and MDs. Most of the boards have been aligned to the new administration. This is normal for every administration.” A senior official privy with the looming changes intimated.
Among the key corporations targeted include; Kenya Railways, Kenya Airports Authority (KAA), Communications Authority of Kenya (CA), Energy and Petroleum Regulatory Authority (Epra) and Kenya National Highways Authority (KeNHA have contracts running into 2024.
Most of the paratstals have no substantive bosses and majority are serving in an acting capacity.
Other bodies lined up for changes are: Kenya Power, Kenya Pipeline Company (KPC), Kenya Electricity Generating Company (KenGen), Retirement Benefits Authority (RBA) and Kenya Electricity Transmission Company (Ketraco).
Others are Kenya Roads Urban Authority (KURA), Kenya Rural Roads Authority (KERRA), Kenya Medical Supplies Agency (Kemsa) and the Rural Electrification and Renewable Energy Corporation (Rerec) among others.
For example, the National Hospital Insurance Fund (NHIF) that is under restructuring process to transition to the National Social Health Insurance Fund (NSHIF) has already announced plans to recruit a new CEO as incumbent Peter Kamunyo’s tenure is set to expire next month, April 14, 2023.
NHIF board chairman Engineer Michael Kamau declined to renew Kamunyo’s term.
“In light of the major reforms underway at the Fund as part of the Kenya Kwanza’s transformative agenda, the board has decided to open up the position of Chief Executive Officer for competitive recruitment exercise.” The statement by NHIF board read in part.
In January this year, Energy Cabinet Secretary Davies Chirchir appointed Engineer Isaac Kiva, seconded from the ministry as the Kenya Electricity Transmission Company (Ketraco) MD in an acting capacity.
The appointment was announced by Ketraco board chairman Abdi Bare Duale, brother to Defence Cabinet Secretary Aden Duale just a week after being appointed by president Ruto.
“This is to bring to your attention that following a meeting of the Board of Directors held on January 26, 2023, the Cabinet Secretary, Ministry of Energy has appointed Eng Isaac Kiva, to be seconded from the Ministry, as acting Managing Director and CEO for a period of six months from January 27, or until the position is competitively filled, whichever is earlier.” The memo read in part.
Kiva takes over from Anthony Wamukota, who has been holding the position in an acting capacity since the resignation of now Kakamega governor Fernandes Barasa in February last year.
The Kenya Kwanza administration has axed majority of the directors and board chairmen appointed in the retired president Uhuru Kenyatta’s last days in office.
However, sacked Kenya National Trading Corporation (KNTC) board chairman retired Captain Paul Rukaria made history after he sued president Ruto and Attorney-General Justin Muturi for revoking his appointment made by retired president Uhuru Kenyatta just days before his exit from office.
Rukaria, a retired Kenya Defence Forces (MKDF) officer was appointed by Uhuru Kenyatta on August 5, 2022 for a term of three years.
Early in January this year, president Ruto through a gazette notice revoked Rukaria’s appointment and replaced him with Hussein Tene Debass.
Debass lost the Isiolo gubernatorial race during last years’ general elections.
“Section 7 (3) of the State Corporations Act is clear that before the President can revoke the appointment of any Board member, there have to be cogent reasons for the said revocation and that the same must be subjected to consultation with the state Corporation Advisory Committee.” Rukaria said.
