ADVOKS GLOBAL · KENYA
Government Owned Enterprises Act
17. Tenure of independent directors
Edition: 2025-11-27 · In force
17. Tenure of independent directors
(1)In the case of a Government Owned Enterprise that is wholly-owned by the Government, an independent director shall serve for a three-year term, renewable once.(2)In the case of a Government Owned Enterprise that is not wholly-owned by Government, an independent director shall serve for a period that may be required, by a legal instrument, before a director is due to retire by rotation.(3)Subject to subsection (2), the retirement by rotation shall be in such a way that at each rotation, one-third of the members of the Board shall be retained.(4)A person shall cease to be an independent director if the person—(a)becomes incapacitated to discharge the duties of a director;(b)is adjudged bankrupt by a competent court of law;(c)becomes absent from three consecutive meetings of the Board without the directors’ permission;(d)resigns by written notice given to the other directors or to the Government Owned Enterprise;(e)is prohibited from being a director by a written law;(f)is convicted of a criminal offence by a competent court of law;(g)becomes a holder of a political office, whether or not in a legislative role;(h)becomes an employee of the Government or a Government Owned Enterprise; and(i)ceases to meet the qualifications of an independent director in the manner stipulated in section 12.(5)A person shall not cease to be an independent director for reasons other than those stipulated in subsection (3).