This is the version of this Act as it was from 15 September 2023 to 4 December 2025. Read the latest available version.
State Corporations Act
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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]
Part I – PRELIMINARY
1. Short title
2. Interpretation
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
05 December 2025
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 12
Act 12
| 1. | Civil Procedure Act | 30669 citations |
| 2. | Companies Act | 2243 citations |
| 3. | Penal Code | 651 citations |
| 4. | Public Procurement and Asset Disposal Act | 606 citations |
| 5. | Co-operative Societies Act | 534 citations |
| 6. | Banking Act | 528 citations |
| 7. | Proceeds of Crime and Anti-Money Laundering Act | 436 citations |
| 8. | Public Audit Act | 145 citations |
| 9. | Central Bank of Kenya Act | 94 citations |
| 10. | Building Societies Act | 26 citations |
Documents citing this one 248
Judgment 208
Act 28
| 1. | Land Act | 5303 citations |
| 2. | Kenya Revenue Authority Act | 1501 citations |
| 3. | Public Finance Management Act | 982 citations |
| 4. | Land Control Act | 777 citations |
| 5. | Public Procurement and Asset Disposal Act | 606 citations |
| 6. | Wildlife Conservation and Management Act | 593 citations |
| 7. | Banking Act | 528 citations |
| 8. | Insurance Act | 381 citations |
| 9. | Retirement Benefits Act | 277 citations |
| 10. | Competition Act | 227 citations |
Legal Notice 11
Gazette 1
| 1. | Kenya Gazette dated 1993-10-29 No. 66 |