The Cabinet has approved two bills-Government-Owned Enterprises Bill, 2025 and the Public Procurement and Asset Disposal (Amendment) Bill, 2025- seeking to modernize and professionalize public sector operations.
The Government-Owned Enterprises (GOE) Bill, 2025 introduces sweeping reforms aimed at enhancing the governance, transparency, and efficiency of these entities—now to be officially designated as Government-Owned Enterprises (GOEs).
A key feature of the bill is the introduction of a merit-based recruitment process for leadership roles in GOEs.This process will be supervised by an independent panel, effectively removing political interference and ensuring only qualified and competent individuals assume key positions.
“These reforms represent a new chapter for Kenya’s government-owned institutions,” said a senior official familiar with the legislation who requested anonymity. “They are designed not only to end inefficiency and patronage but also to drive better outcomes for citizens and the economy.”
To further promote ethical governance, the bill mandates that GOE boards elect their chairpersons from among independent directors, and explicitly bars any conflicts of interest among board members. These provisions are designed to foster professionalism, improve commercial performance, and restore public trust in State-run enterprises.
Cabinet also approved the Public Procurement and Asset Disposal (Amendment) Bill, 2025, which seeks to overhaul the country’s procurement laws. Building on nearly a decade of experience since the enactment of the 2015 legislation, the bill incorporates international best practices and aims to eliminate waste, corruption, and procedural bottlenecks.
A major innovation in the amendment is the formal adoption of e-procurement as the standard for all government purchases. This digital-first approach is expected to boost transparency, accelerate procurement timelines, and curb corruption in public contracting.
Moreover, the bill strengthens support for local contractors and SMEs by setting clear thresholds for local sourcing. It also introduces affirmative action measures to ensure better access for women, youth, and persons with disabilities, thus promoting inclusive economic growth.
Both bills are expected to be tabled in Parliament in the coming weeks, setting the stage for a major shift in how Kenya manages its public enterprises and procurement systems.