The Kenyan Cabinet has approved two major legislative proposals aimed at modernising how public agencies are run and how government resources are procured and managed. The two bills—the Government-Owned Enterprises Bill, 2025 and the Public Procurement and Asset Disposal (Amendment) Bill, 2025—are now set to be tabled in Parliament for debate and possible enactment.
The Government-Owned Enterprises Bill, 2025, introduces new governance reforms for State corporations, which will now be officially referred to as Government-Owned Enterprises (GOEs). The bill seeks to overhaul operations in public institutions by focusing on transparency, professionalism, and efficiency. A standout provision in the bill is the merit-based recruitment for top leadership positions within GOEs. This process will be overseen by an independent selection panel, a move intended to remove political interference from board and executive appointments.
A senior government official who is familiar with the content of the bill but requested anonymity stated that, “These reforms represent a new chapter for Kenya’s government-owned institutions. They are designed not only to end inefficiency and patronage but also to drive better outcomes for citizens and the economy.”
The new bill also stipulates that GOE board chairpersons must be elected from among independent directors. This step is meant to strengthen corporate governance and eliminate conflict of interest in the management of public enterprises. It also emphasizes ethical conduct among board members and seeks to ensure that State-run institutions can deliver better commercial performance while restoring public trust.
Meanwhile, the Public Procurement and Asset Disposal (Amendment) Bill, 2025, aims to upgrade the country’s procurement laws and align them with global standards. The proposed amendments come nearly a decade after the original law was passed in 2015. Over the years, Kenya has grappled with public procurement challenges such as corruption, bureaucratic delays, and wastage of public funds, issues that the new bill hopes to address directly.
One of the most transformative features of this amendment bill is the formal adoption of e-procurement as the default method for all government purchases. By transitioning to digital procurement systems, the government hopes to make public contracting more transparent and efficient while reducing corruption and delays in the award of contracts.
The amendment also seeks to promote inclusive economic growth by setting clear conditions for local sourcing and increasing participation of small and medium-sized enterprises (SMEs). In addition, the bill introduces affirmative action provisions to ensure that women, youth, and persons with disabilities are given better access to government procurement opportunities.
These changes are expected to address long-standing concerns in the procurement space and offer fairer chances for local businesses to grow. If passed, the amendments would mark a significant shift in Kenya’s procurement policies, putting the country on a more transparent and inclusive path.
Both bills are expected to be presented to Parliament in the coming weeks. Their approval will represent one of the most significant reforms in Kenya’s public sector in recent years. The government says these efforts are part of a broader plan to improve service delivery, manage public resources prudently, and rebuild public confidence in government institutions.
Once debated and passed, the laws could change how public bodies operate by improving accountability, promoting value-for-money, and reinforcing the role of public oversight in Kenya’s public finance management systems.
