Chief Executive Officers (CEOs) of government corporations will now be allowed to serve for life after a new directive that scraped off their age and term limits.
The order from Head of Public Service Joseph Kinyua has given the government institutions leeway to re-appoint the CEOs as many times as they deem necessary beyond the retirement age of 60.
"The Government has noted lack of clarity on the terms of service for chief executive officers of state corporations and concerns at service period, which in some instance has led to litigation," Kinyua wrote in a circular to all Cabinet Secretaries (CSs).
He went on to explain that the notice that revised retirement age from 55 to 60 years of age does not apply for the CEOs in State corporations.
[caption caption="File image of President Uhuru Kenyatta with Head of Civil Service Joseph Kinyua"]
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"The Circular No. OP. CAB.2/7A of March 20, 2009 on review of mandatory retirement age for public servants is, therefore, not applicable to State corporations’ chief executive officers.
"You are required to bring the contents of this circular to the boards of directors of State corporations under your docket and to ensure they have put in place a robust mechanism for ensuring the performance of CEOs and leadership requirements over time," the Chief of Staff noted.
Kenya Revenue Authority (KRA) boss John Njiraini is one of the CEOs who is facing a court case for being in office past his retirement age.
Central Bank of Kenya (CBK) deputy governor Shiela M'mbijiwe is a beneficiary of the new law after CBK governor Patrick Njoroge barred her ouster stating that her contract had been extended.
Energy CS Charles Keter was stopped from renewing Kenya Power's then CEO Ben Chumo by a court order from Industrial Court Judge Nelson Abuodha.
The Judge justified the decision by noting that Mr Chumo had attained the retirement age of 60.
Based on the ruling, the then director general of the Energy Regulatory Commission (ERC) Joe Ng’ang’a resigned before the expiry of his contract after he turned 61.
[caption caption="File image of Treasury CS Henry Rotich with CBK governor Patrick Njoroge and deputy governor Sheila M'mbijiwe"]
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