Circular on Separation of Roles Between Boards of Directors and Management of State Corporations and Agencies

Abstract

This circular highlights the importance of the separation of roles between the Board and management in the governance of state corporations and agencies. It emphasizes that the Board's primary responsibility is to monitor operations, provide policy and strategy, and ensure alignment with the corporation's mandate and shareholder interests. The text also addresses concerns about some boards assuming executive functions and demanding excessive facilitation, contrary to the part-time nature of their positions. The Mwongozo Code of Governance for State Corporations is referenced as the guiding policy framework, with specific provisions on the separation of powers and the role of the Board. The Principal Secretaries are directed to address this matter in upcoming board meetings and report on the resolutions. Additionally, Ministries and State Corporations are reminded to seek the office's concurrence before appointing or reappointing Chief Executive Officers