Government Owned Enterprises Act
2. Interpretation
2. Interpretation
In this Act, unless the context otherwise requires—“Board’ means the Board of a Government Owned Enterprise constituted in accordance with section 10;“Cabinet Secretary” means the Cabinet Secretary of the National Treasury;“Chairperson” means a Chairperson of a Board of a Government Owned Enterprise appointed in accordance with section 10(2);“Chief Executive Officer” means a person appointed in accordance with section 22;“independent director” means an independent director of a Board of a Government Owned Enterprise appointed in accordance with section 10(3);“Government” means the national government;“Government Owned Enterprise” means a company which—(a)is a legal person under the ownership and control of the national government;(b)the national government or national government entity is a shareholder with more than fifty percent of the share capital of the company;(c)has been assigned financial and operational powers to carry on a business activity;(d)as its main business, supplies goods or services in accordance with ordinary commercial principles; and(e)is financed wholly or substantially from sources that do not require annual appropriation by National Assembly, or imposition of a tax, levy or other charge under legislation.“relevant Cabinet Secretary” means the Cabinet Secretary for the time being responsible for the sector under which the business of the Government Owned Enterprise falls;“relevant Ministry” means the Ministry for the time being responsible for the sector under which the business of the Government Owned Enterprise falls; and“public service obligation” means an obligation assigned to a Government Owned Enterprise to undertake activities that the Board of a Government Owned Enterprise establishes to the satisfaction of the Cabinet Secretary for the National Treasury—(a)are not in the commercial interests of the Government Owned Enterprise to perform;(b)arise because of a direction, notification or duty to the public by the Government Owned Enterprise;(c)do not arise because of the application of the commercial principles; and(d)require a subsidy, or full funding, by means of budgetary resources to sustain them.Source: Kenya Law