ADVOKS GLOBAL · KENYA
Government Owned Enterprises Act
3. Objects
Edition: 2025-11-27 · In force
3. Objects
The object of this Act is to—(a)establish an ownership regime and legal framework for better performance of Government Owned Enterprises and effective creation of value for the public;(b)establish governance structures that facilitate achievement of commercial objectives of Government Owned Enterprises;(c)enhance accountability and appropriate incentives for Government Owned Enterprises to operate on commercial principles;(d)establish a transparent accounting and funding structure that does not interfere with commercial objectives of the Government Owned Enterprises;(e)provide for separation and allocation of ownership roles between the National Treasury and the relevant Ministries;(f)establish a commercially-focused performance management framework for Government Owned Enterprises;(g)provide for the carrying out of public service obligations, on a separate operational and accounting basis and with contractual arrangements to give full compensation to Government Owned Enterprises for such activities, whenever Government Owned Enterprises are required to perform public service obligations;(h)enhance the standards of transparency and disclosure of corporate information and periodic reports of Government Owned Enterprises; and(i)provide a mechanism by which minority shareholders in Government Owned Enterprises are enabled to elect a number of persons, for appointment as independent directors in the Board of directors that is proportionate to the shareholding of such minority shareholders in the Government Owned Enterprise.