ADVOKS GLOBAL · KENYA
Government Owned Enterprises Act
12. Disqualification
Edition: 2025-11-27 · In force
12. Disqualification
(1)A person is not qualified to be appointed as an independent director of a Government Owned Enterprise, if that person—(a)was employed by the Government Owned Enterprise or its related parties, including its major shareholders, in the preceding five years;(b)is an adviser or consultant to the Government Owned Enterprise or its related parties and is affiliated with a company that is an adviser or consultant to the Government Owned Enterprise or its related parties;(c)is affiliated with a significant customer or supplier of the Government Owned Enterprise or its related parties, including banks or other financial institutions owned by the Government or any of its major shareholders;(d)has personal service contracts with the Government Owned Enterprise, its related parties, or its senior management;(e)is affiliated with any organisation that receives significant funding from the Government Owned Enterprise or its related parties;(f)is employed as an executive of another company where any of the company’s executives serve on that company’s board of directors;(g)is a member of the immediate family of an individual who is, or has been during the immediately preceding five years, employed by the Government Owned Enterprise or its related parties as an executive officer;(h)is, or has in the preceding five years been affiliated with or employed by a present or former auditor of the Government Owned Enterprise or of a related party;(i)is a controlling person of the Government Owned Enterprise (or member of a group of individuals or entities that collectively exercise effective control over the company) or such a person’s close relative, widow, in-law, heir, legatee, and successor of any of the foregoing or the executor is a controlling person of the Government Owned Enterprise;(j)has been affiliated with a political party in the immediately preceding five years; or(k)is a director in another company or other companies producing substantially similar goods or services as the Government Owned Entity and whose combined market share is more than forty percent.(2)For purposes of this section—(a)immediate family member” means a spouse, a parent, a child or a sibling; and(b)affiliated with” means having an official connection to, in the case of a political party, to a governing body of a political party or has identified with a political party for purposes of vying for a political office.