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This is a research submitted in the school of Law, in fulfillment of the academic requirements. Its emphasis is on the corporate governance of state owned enterprises. Corporate governance is a subject that has come to the fore front because of the recognition that it helps to protect the reputation and enhances the effectiveness and efficiency of various entities both in the public and private of a given economy most especially state-owned-enterprises as it is generally for the public interests.The objective of this study took a two-headed approach of first determining the corporate governance practices in State-owned enterprises and second to establish the challenges of corporate governance in state-owned enterprises in Rwanda.