Government Investments and Public Enterprises (GIPE)
- Under the Cabinet Secretary to the National Treasury ( NT In-corporations) Act (Cap 101), the National Treasury on behalf of the Government exercise oversight and ownership through shareholding, equity participation or State membership subscriptions in all government investments.
- The National Treasury drives this mandate from the Constitution of Kenya 2010, the Public Finance Management Act, 2012, the Cabinet Secretary (Incorporation) Act, Cap 101 among others, SC Act 468, NT Circulars and Guidelines.
- The Government Investments and Public Enterprises (GIPE) Department on behalf of the Cabinet Secretary/ National Treasury exercises the oversight and ownership functions in state corporations and other Government investments.
Role of GIPE.
Government Investments and Public Enterprises (GIPE) is the department through which the Cabinet Secretary/ National Treasury exercises the oversight and ownership functions in state corporations and other Government investments.
The Department is under the Directorate of Public Investment and Portfolio Management of the National Treasury & Planning
There are three (3) divisions in GIPE Department: –
- Monitoring and Supervision;
- Finance and Administration.
Specific Functions of GIPE:
GIPE on behalf of the Cabinet Secretary, the National Treasury & Planning is responsible for: –
- Developing the strategic objectives and policies relating to the fiscal/financial oversight and management of State Corporations;
- Appraisal of state corporations’ strategic/corporate plans, projects, other investments and annual budgets, the State Corporations Act;
- Coordinating and steering National Treasury approvals with respect to policy issues, reforms and restructuring of state corporations including financial (balance sheet cleaning, debt restructuring, write-offs, rescheduling and refinancing), legal and organizational restructuring, mergers and acquisitions;
- Coordinate negotiations and vetting of Performance Contracts for state corporations.
- Coordinating and spearheading National Treasury approvals with respect to financing agreements relating to State Corporations borrowings, direct Government loans and on-lent loans, and budget proposals;
- Coordinate negotiations and vetting of Performance Contracts for State Corporations;
- Monitors and provides oversight with respect to ownership of Government investment (Cap. 101, CS, TNT Incorporation Act) by: –
- Coordinating the National Treasury representation in Boards of Directors of state corporations and other Government Investments,
- Representing the National Treasury in Public Investment Committee (PIC), & coordinating the implementation of Parliament/PIC recommendations,
- Monitoring mobilization of Government investment revenue,
Specific Functions for GIPE
- Providing technical support for divestitures, privatizations and public-private partnerships;
- Monitoring contingent liabilities and other fiscal risks relating State Corporations;
- Providing technical and policy support to MDAs with respect to restructuring of mega infrastructure projects like Standard Gauge Railway, Crude Oil Pipeline, and other green field projects;
- Prepare and consolidated reports relating to State Corporations as may be required from time to time; annual Report on Government Investments.
Statement on Fiscal Risks Arising from the State Corporations Sector
The National Treasury has recently undertaken the task of identifying and quantifying the fiscal risks arising from the State Corporations (SC) sector. The key objective of the exercise is to determine the amount of fiscal exposure from the SC sector, which can migrate to the national budget and negatively impact the economy.
For more information, kindly download the report here> State Corporations Fiscal Risk Statement Summary DRAFT EK MM FK Final