Article by Tyneketra Wanja
Over the years, dispute resolution within Kenya’s state corporations has been anchored in a formal, hierarchical, and often adversarial framework. Under the existing State Corporations Act (Cap. 446), disputes, particularly those arising from decisions of the Inspector, flow through a rigid appellate structure culminating in the State Corporations Appeal Tribunal and ultimately, the High Court.
The State Corporations (Amendment) Bill, 2026, signals a deliberate and forward-looking departure from this model. It introduces a more flexible, responsive, and modern dispute resolution architecture by embedding mediation, an Alternative Dispute Resolution (ADR) mechanism enshrined in Article 159 of the Constitution of Kenya, 2010. Mediation in the new Bill is a central process supported by accredited professionals within the institutional framework that reshapes dispute resolution into a strategic governance tool rather than a procedural obligation.
The integration of mediation in Section 23A of the proposed Bill, if passed, will provide a faster, more efficient pathway to resolving disputes within state corporations. It ensures that historic litigation backlogs are reduced, eliminating procedural delays that have long hindered institutional performance. Mediation enables parties to engage directly and resolve issues without prolonged escalation through formal adjudicative processes.
Conflicts, therefore, do not derail continuity and momentum in public administration, since their resolution is expedited through flexible and adaptable mediation processes. Furthermore, it ensures dispute resolution outcomes remain practical and implementable within the institutional context.
Mediation would play a critical role in preserving relationships among state corporations that operate within an interconnected governance ecosystem. These institutions often share mandates, collaborate on projects, and depend on coordinated efforts to deliver public value. Adversarial proceedings tend to fracture these relationships and create long-term institutional friction that undermines effectiveness.
Mediation, on the other hand, helps resolve disputes while maintaining professional and functional relationships across the public sector. Additionally, mediation accelerates dispute resolution, lowers legal costs, and reduces administrative inefficiencies that often delay project implementation in prolonged adversarial processes.
The inclusion of accredited mediators within the Administrative Review Council, proposed to replace the Tribunal under Section 2 of the Bill, would reflect a meaningful move toward strengthening and formalizing alternative dispute resolution in the public sector. The Bill seeks to integrate specialized expertise into the institutional structure and elevate mediation to a formalized and credible practice.
This development aligns Kenya’s public governance framework with international best practices that recognize the value and evolution of ADR in managing complex disputes. It also expands the skill set required within legal and governance professions to include negotiation and mediation competencies. This approach strengthens consistency, quality, and accountability in dispute resolution and enhances the management of public sector disputes within a disciplined legal framework.
