A court case in Kenya has brought attention to the tenure of state corporation CEOs, specifically that of Kenya Ports Authority Managing Director Capt. William Kipkemboi Ruto. Ruto was appointed to the position on March 10, 2023, for a period of three years. A petition filed with the High Court argues that his term ended on March 9, 2026, and challenges his continued occupation of the office.
The petition, which was directed to be responded to within 14 days by Justice Jairus Ngaah on September 23, 2026, claims that Ruto's continued stay in office is unlawful. The court has not yet determined the matter. According to the Kenya Ports Authority Act, the Cabinet Secretary has the power to appoint the Managing Director after consultation with the Board, but the Act itself does not specify a fixed term for the position.
In Kenya, there is no blanket rule that every state corporation CEO must serve exactly three years. However, the Mwongozo Code of Governance for State Corporations provides a general framework under which a CEO serves a three-year term, renewable once subject to performance evaluation by the board. This framework has been referred to by Kenyan courts in disputes over state-corporation executives.
The Mwongozo Code is not the only relevant law, as some state corporations are governed by sector-specific laws that prescribe different terms. For example, the Tea Act provides for a three-year CEO term with eligibility for one further three-year term upon satisfactory performance. The Kenya Ports Authority Act does not specify a fixed term, but rather allows the Cabinet Secretary to determine the terms and conditions of service in the instrument of appointment.
In Ruto's case, the instrument of appointment was a Gazette Notice issued on March 10, 2023, which stated a three-year term. This is why the expiry date has become central to the court case. The Government Owned Enterprises Act, 2025, which commenced on December 5, 2025, provides a new framework for commercially oriented government-owned enterprises, including a three-year CEO term with eligibility for one further term.
The new law also sets out grounds and procedural safeguards for removal, including giving the CEO written reasons and an opportunity to respond. The Act contains transitional provisions stating that a person who immediately before commencement held the office of CEO of a government-owned enterprise under the relevant legislation would continue as CEO, subject to the new law.
Expiry of a fixed contract is different from dismissal, and a CEO who is removed before the end of a valid term ordinarily triggers questions about the contractual and statutory grounds for removal. But when a fixed term expires, the central question becomes whether there is a valid renewal, reappointment or other lawful authority allowing the person to continue.
Key points
- The court case challenging Capt. William Kipkemboi Ruto's continued stay in office has raised questions about the tenure of state corporation CEOs in Kenya.
- The Mwongozo Code of Governance for State Corporations provides a general framework for CEO tenure, but sector-specific laws may prescribe different terms.
- The Government Owned Enterprises Act, 2025, provides a new framework for commercially oriented government-owned enterprises, including a three-year CEO term with eligibility for one further term.
