There is ongoing debate on the role of the Board of Directors in state corporations in Kenya. The Boards seem to have unending conflicts with the management. The role of the state through the minister is also very confusing since ministers seem to hire and fire at will.
The suggestion of an oversight body to supervise all parastatals has come up strongly. The Prime Minister has opposed the creation of an oversight body to supervise Parastatals since this would only create government bureaucracy.
I must say that i buy the Prime Minister's suggestion since government bureaucracy does not attract investment both from local and foreign investors.
I believe that it is the high time the government embraced corporate governance principles in all corporations. If for no other reason, since these state corporations belong to the Kenyan public. The Board of Directors need to be appointed independently and its role separated from that of management. Interference from other state agents needs to be eradicated.
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