CEO of parastatals to serve for a lifetime as Government remove the age limit

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CEO retirement age

The Government has scraped off age limit for chief executive officers of state corporations. The directive means that the CEO can be re-appointed as many times as the appointing authorities deem fit and work better beyond the mandatory retirement age of 60.

The removal of term limit is contained in a circular issued by the head of public service Joseph Kinyua dated February 27, 2018, and titled “term of service for State corporation’s Chief Executive Officers”

It is not clear if the new directive will supersede or supersedes section 80 of the Public Commission Act that bars public officers from serving beyond 60 years in age limit.

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However, the section states ” A public officer shall retire from the service with effect from the date attaining the mandatory retirement age: and the commission or other appointing authority shall not extend the service of such retirement public beyond the mandatory retirement age.”

But according to the 2013 report of the Presidential Task Force on Parastatal Reforms, there are 257 State corporations in the country. In the report, there is the merger of State firms for efficiency but has never been implemented, as report proposed- CEO who has served in the same State agency for two terms.

The proposed mergers of state firms for efficiency but it has never been implemented. It stipulated that for the retained agencies no new contract will be given.

The decision to exclude CEOs from retirement age caps comes at a time when the Government is battling to retain Kenya Revenue Authority Commissioner General John Njiraini, whose term has expired.

The KRA boss attained the age of 60 on December 19 last years, his second and final term expires on February 3, 2018.

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In November 2016, Industrial court Judge Nelson Abudha issued orders stopping Energy Cabinet Secretary Charles Keter from renewing then Kenya Power CEO Ben Chumo’s term – ruling that he had reached the retirement age of 60. in the ruling which also saw the then director of the Energy Regulatory Commission, Joe Ng’anga. leave eight months before his contract expires, he was 61.

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