KAKAMEGA, Kenya – In a move aimed at improving efficiency and reducing government expenditure, the Cabinet, led by President William Ruto, has proposed the dissolution of 16 state corporations with outdated mandates.
The decision was made during the first Cabinet meeting of 2025, held at the State Lodge in Kakamega.
Among the 16 entities set for dissolution are corporations that provide goods or services that the private sector can efficiently supply.
Notable names on the list include the Numerical Machining Complex, Kenya National Shipping Line, and the Jomo Kenyatta Foundation.
President Ruto emphasized the need for his Cabinet to leverage the “unique opportunity” of the broad-based government to drive transformative change in Kenya.
He reiterated the administration’s commitment to the Bottom-Up Economic Transformation Agenda, highlighting the progress made so far.
List of Corporations Facing Dissolution
1. Numerical Machining Complex
2. Scrap Metal Council
3. Kenya Fishing Industries Corporation
4. Jomo Kenyatta Foundation
5. Pyrethrum Processing Company of Kenya Ltd
6. Kenya National Shipping Line
7. School Equipment Production Unit
8. Kenya Yearbook Editorial Board
9. Kenya National Assurance Company
10. Coast Development Authority
11. Ewaso Ng’iro South Development Authority
12. Ewaso Ng’iro North Development Authority
13. Kerio Valley Development Authority
14. Lake Basin Development Authority
15. Tana and Athi Rivers Development Authority
The reforms come as part of a broader strategy to streamline government operations, reduce waste, and curb excesses.
This move follows an assessment by the National Treasury of 271 state corporations, excluding those slated for privatization.
The evaluation identified overlaps and inefficiencies that necessitate significant restructuring.
𝗖𝗔𝗕𝗜𝗡𝗘𝗧 𝗥𝗘𝗦𝗢𝗟𝗨𝗧𝗜𝗢𝗡 President @WilliamsRuto chaired the first Cabinet meeting of 2025 at State Lodge, Kakamega, urging his Cabinet to seize the unique opportunity presented by the broad-based government to drive transformative change in Kenya. -…
Key reform measures include merging 42 state corporations with overlapping or related mandates into 20 entities, dissolving nine state corporations, with their functions transferred to relevant ministries or other state entities, and restructuring six state corporations to align their mandates better and enhance performance.
The President’s push for these reforms is driven by the increasing fiscal pressures due to constrained government resources, rising demand for high-quality public services, and a growing public debt burden.
These changes aim to enhance service delivery and reduce reliance on the Exchequer, ensuring that public resources are used more effectively.
