NAIROBI, Kenya – Eighteen state-owned corporations could soon be transformed into public limited companies (PLCs) under a new Bill tabled in Parliament, a move that would overhaul their governance and open up fresh avenues for raising capital.
The State Corporations (Amendment) Bill, sponsored by National Assembly Majority Leader Kimani Ichung’wah, proposes re-registering key parastatals under the Companies Act, granting them the ability to operate commercially and sell shares to the public.
Among the entities earmarked for conversion are the Kenya Ports Authority, Kenya Railways Corporation, Kenya Airports Authority, Kenya Literature Bureau, Agricultural Finance Corporation, Nyayo Tea Zones Development Corporation, Commodities Fund, Kenya Post Office Savings Bank, Kenya Meat Commission, Kenya Broadcasting Corporation, National Cereals and Produce Board, and the Kenyatta International Convention Centre.
Also on the list are the Kenya Veterinary Vaccine Production Institute, Kenya Fishing Industries Corporation, Agricultural Development Corporation, and National Mining Corporation.
If Parliament approves the Bill, the shift to PLCs will grant the corporations flexibility to attract investment while limiting liability for shareholders.
It also seeks to make them more accountable to the Treasury and the public, with a sharper focus on profitability and financial independence.
“The respective government-owned enterprises provided in the second schedule shall incorporate in their names a public limited liability company under the provisions of the Companies Act,” Ichung’wah said when tabling the Bill.
The legislation also sets new rules for the creation of state-owned enterprises.
Line ministries will be required to submit detailed business cases to the Treasury, backed by feasibility studies demonstrating financial viability and economic impact.
The Treasury will then review and forward proposals to the Cabinet for final approval.
According to the Bill, the Cabinet Secretary for the National Treasury will oversee the establishment process once the proposals are cleared.
If passed, the law will mark a significant restructuring of Kenya’s parastatal sector, positioning them to run on commercial principles rather than relying heavily on state funding.
