Corporate Social Responsibility in Defence-Managed State Enterprises

Governance, Public Value, And the Kenya Shipyards Limited Case in Kisumu

Abstract

The growing involvement of defence institutions in non-military sectors of the economy has raised an important, though still insufficiently theorised, question for civil-military relations and corporate governance: how should corporate social responsibility (CSR) be understood when a military institution manages a civilian-facing state enterprise? This paper examines that question through the case of Kenya Shipyards Limited (KSL) in Kisumu, a state-owned enterprise managed by the Ministry of Defence and positioned within Kenya’s blue economy and industrialisation agenda. Drawing on civil-military relations theory, state capitalism and state-owned enterprise governance, and strategic CSR scholarship, the paper argues that CSR in defence-managed enterprises should not be reduced to philanthropy or reputational messaging. Rather, it should be understood as an embedded governance practice through which such enterprises demonstrate public value, legitimacy and accountability. Using a qualitative documentary case study, the paper analyses how KSL’s public record links CSR to three observable domains: strategic public-value delivery through shipbuilding and transport infrastructure, workforce and skills development through institutional partnerships, and safety-oriented product innovation for lake communities. The paper further argues that the central governance challenge is not whether defence-managed enterprises can deliver developmental outcomes but whether such delivery is matched by routine disclosure, measurable responsibility, and effective oversight. In this way, the article contributes to CSR scholarship, civil-military relations, and African political economy by showing that defence-led corporate management in a democratic setting is best assessed through the intersection of performance, public value, and accountability.