In a bold move to enhance efficiency and reduce public resource wastage, the Cabinet has approved sweeping reforms targeting 42 State corporations. These changes, announced after a Cabinet meeting chaired by President William Ruto at the Kakamega State Lodge on Tuesday, will see several agencies merged, restructured, or dissolved.
“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,” the Cabinet’s despatch stated.
Assessment Reveals Redundancies
The National Treasury, after evaluating 271 State corporations (excluding those slated for privatization), identified inefficiencies and overlapping functions. The assessment uncovered pending bills totaling Ksh.94.4 billion as of March 31, 2024, attributed to the failure of many corporations to meet their statutory obligations.
Key Mergers
One of the main reforms includes merging State corporations with similar functions to streamline operations. Some notable mergers include:
- University Fund with Higher Education Loans Board.
- Kenya Rural Roads Authority with Kenya Urban Roads Authority.
- Kenya Tourism Board with Tourism Research Institute.
Other mergers aim to integrate regulatory bodies, research entities, and funding agencies for improved service delivery.
Dissolution of Nine Corporations
Nine State corporations, including the Kenya Film Classification Board and LAPSSET Corridor Development Authority, will be dissolved, with their functions transferred to parent ministries.
Additional agencies set for dissolution include:
- Kenya Fish Marketing Authority
- Centre for Mathematics, Science and Technology Education in Africa
Sixteen entities have been earmarked for divestiture or privatization, among them the Numerical Machining Complex, Kenya National Shipping Line, and Pyrethrum Processing Company of Kenya Ltd.
“These corporations have been deemed non-essential or better suited for private sector management,” the report elaborates.
Six corporations, including Kenya Utalii College and the Postal Corporation of Kenya, will undergo restructuring to align with their mandates and boost performance.
Public funds such as the Sports, Arts, and Social Development Fund will now fall under respective ministries with strengthened governance structures. Similarly, professional bodies, including the Nursing Council of Kenya and Engineers Board of Kenya, will no longer receive government funding, focusing instead on self-sustenance.
This ambitious reform plan aims to reduce redundancies, boost efficiency, and address fiscal pressures, marking a significant step toward streamlined governance in Kenya.
