Nairobi, Kenya — Six regional development authorities will cease operations by June 2025 in a sweeping government effort to streamline public service delivery, cut costs, and eliminate redundancy within Kenya’s devolved governance structure.
The agencies set to be dissolved are the Tana and Athi Rivers Development Authority, Kerio Valley Development Authority, Lake Basin Development Authority, Ewaso Ng’iro North Development Authority, Ewaso Ng’iro South Development Authority, and the Coast Development Authority.
According to budget estimates for the 2025/26 financial year, their dissolution will see the transfer of all assets, liabilities, and personnel to both the national and county governments by June 30, 2025.
End of an Era for Agencies Created Before Devolution
The move marks a significant shift in the management of regional development in Kenya, following the introduction of devolution in the 2010 Constitution — a change that rendered many such authorities functionally obsolete.
“These reforms have been necessitated by increasing fiscal pressures arising from constrained government resources, the demand for high-quality public services, and the growing public debt burden,” reads a Cabinet memo that endorsed the decision.
The Cabinet, in its meeting on March 7, 2024, directed the Ministry of East African Community and Regional Development to assess the continued relevance of these authorities.
The review found that the legal frameworks under which they were created had been overtaken by the constitutional shift toward devolved governance.
Implementation Plan Already Underway
Budget documents tabled before Parliament by Treasury Cabinet Secretary John Mbadi confirm the government has begun executing a roadmap for the agencies’ closure.
“Annex 4 of this Budget Summary provides a statement of a detailed roadmap and timelines on the proposed dissolution of the six Regional Development Authorities and the eventual transfer of assets, liabilities and personnel to the two levels of government by June 30, 2025,” Mbadi noted.
The transition is being coordinated by the Intergovernmental Relations Technical Committee (IGRTC), which is expected to guide both levels of government through the asset and staff redistribution process.
Part of Ruto’s Broader Reform Agenda
The disbandment is part of a broader state reform initiative spearheaded by President William Ruto, who earlier this year announced a major overhaul of state corporations.
In January, the Cabinet approved the merger of 42 state corporations into 20, and the outright dissolution of nine others.
The reforms follow a National Treasury audit of 271 state corporations (excluding those slated for privatisation), which revealed systemic inefficiencies, overlapping functions, and underperformance.
As of March 31, 2024, pending bills owed by state agencies had ballooned to Sh94.4 billion, with several entities failing to meet their legal mandates.
Despite the shake-up, State House has previously assured that no jobs will be lost.
Instead, staff from the affected agencies are expected to be absorbed into roles within national or county governments, based on their functions and skills.
