The BGA Kenya Team, led by Managing Director Dickson Omondi, wrote an update to clients on Kenya’s newly constituted Cabinet.

Context

  • Kenya’s President William Ruto in early August formally appointed 19 Cabinet secretaries, following intense public pressure that led to the dismissal of the 21 Cabinet secretaries and the attorney general. Contrary to public expectations that the new Cabinet would comprise fresh nominees, 10 of those initially dismissed have been reappointed. The reconstituted Cabinet includes four senior members of the largest opposition party.
  • The criteria for appointments highlight a strategy to expand the president’s support base and achieve political stability in the face of recent public unrest. Rather than constitute a Cabinet of technocrats, Ruto has demonstrated a preference for politicians, some of whom have previously faced integrity questions. Overall, the appointments reflect a missed opportunity to undertake radical changes required to build a culture of government professionalism, transparency and integrity.

Significance

  • The dismissal of the Cabinet was precipitated by widespread anti-tax public protests. The parliamentary debate and passage of the Finance Bill 2024, the government’s revenue plan for the new budget period, led to widespread protests against proposals to generate additional tax revenue of $2.7 billion. Although several provisions that would have increased the cost of living were withdrawn prior to the parliamentary debate, protestors breached Parliament grounds to demand a complete rejection of the bill. President Ruto later declined to approve the bill and returned it to Parliament with recommendations that the bill be given a complete overhaul. Not satisfied with the president’s action, street protests morphed to demands for public debt accountability, action to address corruption and the waste of public resources and the resignation of Ruto.
  • Civil society leaders have petitioned the judiciary to revoke the Cabinet appointments. Following parliamentary approval of his Cabinet secretary nominees, the president quickly moved to formalize their appointment to office. Some of the appointments have raised integrity concerns, with civil society groups citing previous investigations by the Ethics and Anti-Corruption Commission and concerns by Parliament. The U.S. Embassy in Kenya asked Kenya’s Parliament to vet nominees to ensure they meet constitutional integrity requirements. Expressing their dissatisfaction with the vetting process, some civil society leaders petitioned the courts to revoke the appointments.
  • This will be a test case on the application of constitutional requirements for integrity at a time when the courts have demonstrated a willingness to challenge important executive and parliamentary decisions. For example, the courts ruled that the Finance Act 2023 was unconstitutional, leading to uncertainty on tax remittal requirements for several items including payroll taxes. A decision by the courts to revoke the appointments will lead to short-term uncertainty but in the long-run would strengthen the consideration of integrity issues in public appointments.

Implications

  • Bold efforts required that the government build a culture of professionalism and integrity. Alongside the announcement of a reconstituted Cabinet, Ruto signaled his intention to pursue legislative reforms that, if enacted, would lead to quicker judicial resolution of corruption cases. Action by the president to enforce professionalism and integrity in public service will reinforce citizen confidence and build a more favorable business environment.
  • The president still has an opportunity to ensure that Cabinet secretaries prioritize public service and their ministries over politics. This will be particularly important for critical ministries held by politicians, including the ministries of National Treasury and Economic Planning; Energy and Petroleum; Investments, Trade and Industry; Mining, Blue Economy and Maritime Affairs; Environment, Climate Change and Forestry; and Cooperatives and Micro, Small and Medium Enterprises Development. These ministries are core to the economy, and the absence of bold action to hold responsible Cabinet secretaries accountable will mean continuing challenges faced by the business sector in accessing and partnering with the government to improve the business environment.
  • The current Cabinet uncertainties provide an opportunity for businesses to explore strategic engagement with technocrats appointed to the Cabinet. Although the president reappointed several former Cabinet secretaries to the reconstituted Cabinet, the business community has an opportunity to build new relationships and deepen strategic engagement with newly appointed Cabinet secretaries. This is important in key ministries headed by technocrats. The newly appointed Cabinet secretary for information, communication and the digital economy brings critical expertise in a sector that is core to Kenya’s economic development. Similarly, the Cabinet secretary for agriculture and livestock development, Kenya’s economic mainstay, demonstrates the professional background relevant to the ministry. The same is true for the Ministry of Health. These are important ministries for Kenya’s economic development and social development and offer possibilities for deepening partnerships with the business sector.

We will continue to keep you updated on developments in Kenya as they occur. If you have any comments or questions, please contact BGA Kenya Managing Director Dickson Omondi at domondi@bowergroupasia.com.

Best regards,

BGA Kenya Team

A small ginko leaf

Managing Director, Kenya

Dickson is a leading expert on the political economy, business and regulatory affairs of countries across Africa, with more than 25 years of experience in political party development, legislative strengthening, governmental accountability, public policy and civic engagement. He is a strategic leader and a firm believer in the continent’s economic and political potential, reinforced by his experience traveling and working in more than 16 countries in sub-Saharan Africa. Dickson works alongside multinational companies, governments and civil society to find mutually beneficial solutions for all stakeholders. His team’s strategic advocacy across a broad range of sectors helps organizations overcome challenges and ... Read More