Failure of good corporate governance in state owned corporations in Kenya: towards a more effective parliamentary monitoring role

Abstract

This thesis critically examines the effectiveness of the oversight role of Parliament in the management of state corporations in Kenya and how the same can be enhanced in the course of implementing the Constitution ofKenya 2010. This thesis argues that state corporations in Kenya have experienced mismanagement, bureaucracy, wastage, incompetence and irresponsibility by directors and management leading to failure of the state owned corporations to achieve good performance. A case will be made for the establishment of Parliamentary mechanisms to ensure accountability in the management of state corporations. Because of Parliament‟s power to approve executive expenditure, the budget vote process is among the most direct avenues through which Parliamentary decisions can be enforced. Other avenues are the power to summon members of the executive, and the public to appear before Parliamentary committees to explain their actions during Parliamentary question-time. It is further recommended that when Parliament has received reports from its committees, the House must demand response from the relevant state owned corporations within a reasonable period. This thesis attempts to show that the present practice where reports are presented and debated, but then left to gather dust without being implemented should come to an end. Parliament must closely monitor implementation of its recommendations and question non-implementation of agreed ones. The thesis advocates for a more effective Parliament and not one that will simply go through the motions without mechanisms of enforcement. On a comparative analysis, the South African Parliament model is considered an ideal model and it is recommended that the Kenyan parliament can borrow from the South African Parliament model.