NAIROBI, Kenya – The government announced the merger of 42 State corporations into 20 agencies and the dissolution of nine others to streamline government operations and reduce financial inefficiencies.
The Cabinet decision, made during a meeting chaired by President William Ruto at the Kakamega State Lodge on Tuesday, is expected to enhance service delivery and reduce the public sector’s reliance on the Exchequer.
State House spokesperson Hussein Mohamed assured the public that the reforms would not result in job losses.
“No State Corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the Public Service,” Mohamed emphasized in a post on X.
He added that the move aligns with the government’s commitment to streamline operations and curb excesses.
No State Corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the Public Service. This is line with the commitment to streamline government operations, reduce waste, and curb excesses. The reforms will address operational…
Among the entities set for merger are the University Fund, which will integrate with the Higher Education Loans Board, and the Kenya Rural Roads Authority, which will combine with the Kenya Urban Roads Authority.
Meanwhile, the Kenya Film Classification Board, LAPSSET Corridor Development Authority, and the Kenya Fish Marketing Authority are among the nine agencies to be dissolved, with their functions reverting to parent ministries.
A recent National Treasury assessment highlighted that many State corporations have struggled with their statutory obligations, accumulating pending bills amounting to Ksh.94.4 billion as of March 31, 2024.
The Cabinet believes the reforms will significantly alleviate these financial burdens.
Six corporations, including Kenya Utalii College and the Postal Corporation of Kenya, will undergo restructuring to enhance performance.
Additionally, professional organizations such as the Nursing Council of Kenya and the Engineers Board of Kenya will no longer receive government budgetary allocations, as they are declassified from State corporations.
