Incorporating Principles of Corporate Governance in the Management of State Corporations in Kenya: a Critique of the ‘mwongozo’ Code of Governance for State Corporations

Abstract

Mwongozo, the Code of Governance for State Corporations is the policy document by the government of Kenya that seeks to incorporate the principles of corporate governance in the management and governance of State Corporations in Kenya. It is an integral part of the reform recommendations developed by the Presidential Task Force on Parastatal Reforms. It aims to entrench principles and values of public service and best practices in the management of state corporations. The code has been issued as Executive Order number 7. However, the litmus test for Mwongozo is whether it will endure the challenges that have bedeviled the management and governance of public entities world over. The Code when passed through the various legal tests falls short of the mandatory constitutional dictate of public participation, contradicts provisions of statute and does not address the central concerns that have bedeviled SCs since independence. The code does not also fit in the social and economic environment. As a public policy document, Mwongozo can only succeed if it is enacted as a binding legal norm, addresses the specific challenges of our economy and if other laws such as the State Corporations Act Cap 466 are aligned to the provisions of the Constitution, specifically Article 10 and 232.