Kenya’s regulatory and policy landscape continues to evolve across key areas of the economy. This article brings together four notable 2026 developments covering State corporation leadership, energy policy, the Sotik Special Economic Zone, and air passenger service charge administration.
State Corporations Bill Proposes Six-Year Cap on CEO Tenure
The State Corporations (Amendment) Bill, 2026, published on 19 August, proposes a standard three-year term for chief executives of Kenya’s State corporations, renewable once. This would create a maximum six-year tenure while allowing existing CEOs to complete their current terms. Early removal would remain possible where there is just cause and due process is followed. If enacted, the change would bring greater consistency to leadership across State corporations in Kenya and require boards and parent ministries to review succession, recruitment and renewal plans. It may also increase focus on leadership continuity and governance.
National Energy Policy Sets Direction for Kenya’s Energy Investment Landscape
The National Assembly has adopted the National Energy Policy, 2025, setting out the Government’s priorities for Kenya’s energy sector, including greater renewable energy investment, competitive energy pricing, improved infrastructure, energy efficiency and increased local participation. The Policy also targets universal electricity access and expanded clean-cooking solutions by 2030. While the Policy does not itself create new binding obligations, it provides an important indication of the Government’s future direction on energy regulation, procurement and investment. Energy developers, infrastructure investors and financiers operating in or considering opportunities in Kenya should consider these priorities when assessing future projects and opportunities.
Sotik SEZ Receives Customs Area Designation
Sotik Special Economic Zone in Bomet County, Kenya, has been formally designated as a customs area by the Commissioner of Customs and Border Control. The designation brings the 39.77-hectare zone within Kenya’s customs-control framework, supporting the movement and oversight of goods entering and leaving the SEZ. This is significant for businesses considering manufacturing, processing, warehousing and export-oriented operations in the area, as the customs designation is an important component of the SEZ operating framework. Investors looking at opportunities in the Sotik SEZ should consider the applicable customs procedures and incentives when assessing opportunities within the zone.
Air Passenger Service Charge Bill Proposes Changes to Revenue Administration
The Air Passenger Service Charge (Amendment) Bill, 2026, introduced in the National Assembly on 18 August 2026, proposes changes to how air passenger service charge collections are administered in Kenya. The Bill would require the Commissioner to remit collections directly to the statutory beneficiary entities after deducting KRA’s collection costs, with the allocation proportions to be prescribed by the Cabinet Secretary. It also proposes related amendments to the Kenya Airports Authority Act. The changes are relevant to Kenya’s aviation and tourism stakeholders, although the Bill primarily concerns administration and allocation of existing revenues rather than introducing a new passenger charge.
