The Government has scrapped age and term limits for chief executive officers of State corporations. The directive means that the CEOs can be re-appointed as many times as the appointing authority deems fit and work beyond the mandatory retirement age of 60.
The removal of term limits is contained in a circular issued by Head of Public Service Joseph Kinyua dated February 27, 2018, and titled ‘Terms of Service for State Corporation’s Chief Executive Officers’.
Under the current regime, depending on the relevant Act creating the corporations, CEOs serve for a between three and five years and are eligible for re-appointment for a second term depending on their performance. The law also requires that the executives retire upon attaining 60 years. Mr Kinyua’s circular has overturned this requirements.
“The Government has noted lack of clarity on terms of service for chief executive officers of state corporations and concerns at service period, which in some instance has led to litigation,” Kinyua’s circular copied to all Cabinet secretaries, the Attorney General, and all principal secretaries.
The circular states that the terms of service for CEOs are contractual and renewable based in performance and business requirements, and that they are not subject to the general public service policy on mandatory retirement at 60 or 65 years or limit as to the number of terms served. “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,” wrote Kinyua, referring to the policy that raised retirement age from 55 to 60 years.