Related documents
- Is amended by 24th Annual Supplement
- Amends Exchequer and Audit Act
LAWS OF KENYA
STATE CORPORATIONS ACT
CAP. 446
- Published in Kenya Gazette Vol. LXXXVIII—No. 40 on 26 September 1986
- Assented to on 4 September 1986
- Commenced on 1 November 1986 by State Corporations Act Commencement
- [Amended by Statute Law (Miscellaneous Amendments) Act, 1986 (Act No. 18 of 1986) on 30 December 1986]
- [Amended by Statute Law (Miscellaneous Amendments) Act, 1988 (Act No. 13 of 1988) on 16 December 1988]
- [Amended by Statute Law (Miscellaneous Amendments) Act, 1992 (Act No. 11 of 1992) on 23 October 1992]
- [Amended by Statute Law (Miscellaneous Amendments) Act, 2002 (Act No. 2 of 2002) on 7 June 2002]
- [Amended by Public Audit Act (Act No. 12 of 2003) on 9 January 2004]
- [Amended by Public Procurement and Disposal Act, 2003 (Act No. 3 of 2005) on 1 January 2007]
- [Amended by Statute Law (Miscellaneous Amendments) Act, 2015 (Act No. 25 of 2015) on 24 December 2015]
- [Revised by 24th Annual Supplement (Legal Notice 221 of 2023) on 31 December 2022]
- [Amended by Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Act, 2023 (Act No. 10 of 2023) on 15 September 2023]
1. Short title
This Act may be cited as the State Corporations Act.2. Interpretation
In this Act, unless the context otherwise requires—"Audit-General (Corporations)" deleted by Act No. 2 of 2002, Sch.;"Board" means the Board constituted in accordance with section 6(1) or the body or person, by whatever name called, carrying out or empowered to carry out functions relating to the overall direction and management of a state corporation;"chief executive" means the person appointed and employed as such under section 5(3) or the person for the time being exercising the executive powers of a state corporation;"Committee" means the State Corporations Advisory Committee established by section 27;"Inspector" means the Inspector-General (Corporations) appointed as such under section 18;"the Cabinet Secretary" means the Cabinet Secretary for the time being assigned ministerial responsibility for a state corporation and matters relating thereto by the President under section 4 and "parent Ministry" shall be construed accordingly;"state corporation" means—(a)a state corporation established under section 3;(b)a body corporate established before or after the commencement of this Act by or under an Act of Parliament or other written law but not—(i)the Principal Secretary to the National Treasury incorporated under the Cabinet Secretary to the Treasury (Incorporation) Act (Cap. 101);(ii)spent;(iii)a co-operative society established under the Co-operative Societies Act (Cap. 490);(iv)a building society established in accordance with the Building Societies Act (Cap. 489);(v)a company incorporated under the Companies Act (Cap. 486) which is not wholly owned or controlled by the Government or by a state corporation;(vi)the Central Bank of Kenya established under the Central Bank of Kenya Act (Cap. 491);(vii)deleted by Act No. 2 of 2002, Sch.;(viii)the Financial Reporting Centre established under the Proceeds of Crime and Anti-Money Laundering Act (Cap. 59A).(c)a bank or a financial institution licensed under the Banking Act or other company incorporated under the Companies Act (Cap. 486), the whole or the controlling majority of the shares or stock of which is owned by the Government or by another state corporation;(d)a subsidiary of a state corporation."Tribunal" means the State Corporations Appeal Tribunal established by section 22.[Act No. 2 of 2002, Sch, Act No. 10 of 2023, Sch.]Part II – ESTABLISHMENT AND POWERS OF STATE CORPORATIONS
3. Establishment of state corporations by the President
4. Ministerial responsibility for state corporations
The President shall assign ministerial responsibility for any state corporation and matters relating thereto to the Vice-President and the several Cabinet Secretary as the President may by directions in writing determine.5. Powers generally of state corporations
5A. Exemption
Part III – BOARDS AND MANAGEMENT OF STATE CORPORATIONS
6. Composition of Boards
7. Power to issue directions and to remove Board
8. Meetings and procedure of Boards
9. Committees
A state corporation may establish committees consisting of members of the Board to deal with such matters as the Board may specify and notice of establishment of any committee in accordance with this section whether established before or after the commencement of this Act shall be served on the State Corporations Advisory Committee.10. Remuneration and expenses of Chairperson and members
10A. Financial year
Notwithstanding anything to the contrary in any written law, the financial year of every state corporation shall be from the 1st of July in a year to the 30th of June in the next year.[Act No. 12 of 2003, 3rd Sch.]Part IV – CONTROL OF THE FINANCES, ETC. OF STATE CORPORATIONS
11. Annual estimates
12. Expenditure not included in annual estimates
No state corporation shall, without the prior approval in writing of the Cabinet Secretary and the Treasury, incur any expenditure for which provision has not been made in an annual estimate prepared and approved in accordance with section 11.13. Dealing with assets
14. Books of accounts, records and audits
15. Accountability
16. Renewal of depreciating assets, etc. and disposal of surplus funds
17. Restriction on loans to Board members and staff
Notwithstanding any other written law establishing a state corporation or its memorandum and articles of association no state corporation shall grant to a member of the Board or staff any loan or advance or arrange any credit facility for him except in accordance with regulations made by the state corporation under this section and approved by the Treasury, but in the absence of those regulations such loan, advance or credit facility may be granted in accordance with terms and conditions approved by the Committee.18. Inspector-General (Corporations)
19. Powers of Inspector-General (Corporations) after investigations
20. Application for written reasons for Inspector-General (Corporations) decision
The Inspector-General (Corporations) shall, on the application of any person aggrieved by a disallowance or surcharge made under section 19, within fourteen days of the application furnish the person with reasons in writing for the decision.[Act No. 2 of 2002, Sch.]21. Appeals against decision of Inspector-General (Corporations)
22. The State Corporations Appeal Tribunal
23. Appeals to the High Court
24. Payment and recovery of sums certified to be true
25. Expenses of the Inspector-General (Corporations)
Part V – THE STATE CORPORATIONS ADVISORY COMMITTEE
26. Establishment of Committee
27. Functions of the Committee
The Committee shall advise on the matters and perform any functions it is required by this Act to perform and in addition shall—Part VI – MISCELLANEOUS PROVISIONS
28. Dissolution of state corporations
Where the Committee advises that a state corporation shall be dissolved then nothing in this Act shall be construed as derogating from the procedure by which the state corporation would be dissolved under the law by or under which it was established.29. Offences and penalty
A state corporation which, or an officer thereof who, fails to render or submit or make available for inspection any record, book, account or information required by or pursuant to this Act, or which or who restricts the Auditor-General (Corporations) or the Inspector in the performance of his duties shall be guilty of an offence cognizable to the police and punishable by a fine not exceeding ten thousand shillings or imprisonment for a term not exceeding three years or both and section 23 of the Penal Code (Cap. 63) shall, where the offence is committed by state corporation, apply mutatis mutandis.[Act No. 13 of 1988, Sch.]30. Regulations
The President may make regulations generally for the better carrying into effect of the provisions of this Act and the powers conferred by this section may be assigned in accordance with section 18 of the Constitution.31. [Spent]
History of this document
15 September 2023 this version
31 December 2022
Revised by
24th Annual Supplement
Read this version
24 December 2015
01 January 2007
09 January 2004
Amended by
Public Audit Act
Read this version
07 June 2002
23 October 1992
16 December 1988
30 December 1986
01 November 1986
Commenced by
State Corporations Act Commencement
26 September 1986
04 September 1986
Assented to
Cited documents 10
Act 10
1. | Civil Procedure Act | 19334 citations |
2. | Companies Act | 1529 citations |
3. | Co-operative Societies Act | 386 citations |
4. | Public Procurement and Asset Disposal Act | 366 citations |
5. | Proceeds of Crime and Anti-Money Laundering Act | 316 citations |
6. | Public Audit Act | 113 citations |
7. | Central Bank of Kenya Act | 60 citations |
8. | Penal Code | 28 citations |
9. | Building Societies Act | 21 citations |
10. | Cabinet Secretary to the Treasury (Incorporation) Act | 6 citations |
Documents citing this one 152
Judgment 114
Act 26
1. | Land Act | 3529 citations |
2. | Kenya Revenue Authority Act | 1095 citations |
3. | Public Finance Management Act | 686 citations |
4. | Land Control Act | 527 citations |
5. | Public Procurement and Asset Disposal Act | 366 citations |
6. | Banking Act | 348 citations |
7. | Insurance Act | 247 citations |
8. | Competition Act | 209 citations |
9. | Retirement Benefits Act | 198 citations |
10. | Vetting of Judges and Magistrates Act | 51 citations |
Legal Notice 11
Gazette 1
1. | Kenya Gazette dated 1993-10-29 No. 66 |