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World Bank, Washington, DC
Africa | Africa Eastern and Southern (AFE) | Kenya
2021-10-28T18:59:19Z | 2021-10-28T18:59:19Z | 2021-08

This report applies the new World Bank integrated State-Owned Enterprises Framework (iSOEF). It covers the overall landscape of the state-owned enterprises (SOEs) portfolio, including financial performance and risk analysis, and provides an analysis based on two iSOEF modules capturing key aspects of SOEs, namely ‘Fiscal Implications of SOEs’, (iSOEF module two), which offers an assessment of the main fiscal costs and risks from the SOE sector in Kenya; and the underlying ‘Corporate Governance and Accountability Mechanisms’ (iSOEF module four). A particular focus was put on financial rather than operational performance and impact on household welfare (i.e., iSOEF module three: distributional impact of SOE reform). Since market-related adverse effects of Kenya’s State Corporations were assessed as part of the Kenya Systematic Country Diagnostic 2020, this report provides limited discussion of State Corporations’ role in the market (iSOEF module one) and only insofar it is relevant to the scope of this assessment. The report is organized in the following 5 sections: introduction, state corporations’ landscape in Kenya, fiscal relations with the government; corporate governance and accountability; and conclusion and recommendations.


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