KFCB, Other State Parastatals Govt Has Marked for Dissolution, Merging
- Twenty-five state corporations have been earmarked for dissolution, with the state seeking to merge another 42
- Head of Public Service Felix Koskei said the move is aimed at making the state agencies more efficient and cutting costs for operations
- In his communique, Koskei said the staffers in the affected agencies won't have their contracts renewed
Nairobi - The government has sanctioned changes in a host of state corporations to enhance efficiency and cut operational costs.
Source: Twitter
A communique from the Head of Public Service Felik Koskei indicated that 42 agencies would be merged into 20 following a resolution by the Cabinet.
Another 25 will be dissolved, and their key function taken back to their parent ministries.
At the same time, the Cabinet resolved to restructure six state corporations and declassify four public funds and 13 professional bodies.
Koskei addressed a letter dated May 16 to the heads of various state corporations, communicating the upcoming reforms.
"Reference is made to the decision of the Cabinet as transmitted through the action letter. Referenced as dated 21st January 2025. It is notified that the Cabinet considered the proposed reforms for state corporations as submitted by the National Treasury and sanctioned varied reforms for implementation within the current financial year. The approved reforms are to be implemented through," partly read a dispatch from the Head of Public Service seen by TUKO.co.ke.
Consequently, contracts for officers in the affected agencies won't be renewed.
The Cabinet also sanctioned the end of any ongoing recruitment processes in the corporations.
"A moratorium is issued on recruitment and renewal of contracts for chief executive officers or any other officers serving on contract terms, at the lapse of their current tenure. That any ongoing recruitment processes of staff in any cadre are halted forthwith. Any implementation or approval of new human resource policies, personal emoluments and benefits of any kind, staff organisation, salary structures, or roll out of any new capital projects is hereby suspended," read the notice.
Which agencies has Ruto's regime merged?
Among the affected agencies is the University Fund, which will be combined with the Higher Education Loans Board (HELB).
The Kenya Tourism Board will be integrated with the Tourism Research Institute, while the Export Processing Zones Authority will be consolidated with the Special Economic Zones Authority.
The Kenya Industrial Property Institute is set to merge with the Anti-Counterfeit Authority, while the Kenya Copyright Board will be unified with the Kenya Industrial Research and Development Institute and Kenya Industrial Estates.
The Agricultural Finance Corporation will merge with the Commodities Fund, and the Kenya Forest Service (KFS) will integrate with the Kenya Water Towers Agency.
The Agricultural Development Corporation will be merged with the Kenya Animal Genetic Resource Centre; the National Irrigation Authority merged with the National Water Harvesting and Storage Authority.
Others are;
- Kenya Law Reform Commission merged with the National Council for Law Reporting.
- The Tourism Promotion Fund merged with the Tourism Fund.
- The Commission for University Education merged with the Technical and Vocational Education and Training Authority and the Kenya National Qualifications Authority.
- The Kenya Rural Roads Authority merged with the Kenya Urban Roads Authority.
- The Kenya Investment Authority merged with the Kenya Export Promotion and Branding Agency.
- The Water Services Regulatory Board merged with the Water Regulatory Authority and the Regional Centre on Ground Water Resources, Education, Training and Research.
- The Kenya National Trading Corporation merged with the National Cereals and Produce Board.
- Uwezo Fund merged with the Women Enterprise Fund and the Youth Enterprise Development Fund.
- The Kenya Medical Research Institute merged with the Kenya Institute of Primate Research.
- The Kenya Plant Health Inspectorate Service merged with the National Bio-Safety Authority.
- The Agriculture and Food Authority merged.
Source: UGC
Which agencies has Ruto's government dissolved?
Nine agencies have been earmarked for dissolution, with their functions retained in their relevant ministries.
They are the;
- Kenya Tsetse Fly and Trypanosomiasis Eradication Council
- Kenya Fish Marketing Authority, Centre for Mathematics, Science and Technology Education in Africa
- President's Award - Kenya
- Nuclear Power and Energy Agency
- Kenya National Commission for UNESCO
- Kenya Film Classification Board
- National Council for Nomadic Education
- The LAPSSET Corridor Development Authority.
The Cabinet also identified 16 state corporations which have outlived their purposes and whose mandates can be sourced from the private sector.
They are;
- Numerical Machining Complex.
- Scrap Metal Council.
- Kenya Fishing Industries Corporation.
- Jomo Kenyatta Foundation.
- Pyrethrum Processing Company of Kenya Ltd.
- Kenya National Shipping Line.
- School Equipment Production Unit.
- Kenya Yearbook Editorial Board.
- Kenya National Assurance Company.
- Coast Development Authority.
- Ewaso Ng'iro South Development Authority.
- Ewaso Ng'iro North Development Authority.
- Kerio Valley Development Authority.
- Lake Basin Development Authority.
- Tana and Athi Rivers Development Authority.
- Kenya Post Office Savings Bank.
Ruto's regime has often undertaken drastic reforms in the state offices for, among other things, austerity.
Why Ruto's government scrapped car loans for civil servants
Last year, the National Treasury announced the scrapping of car and house loans for civil servants.
Additionally, the Exchequer declared a halt on expenditures related to the renovation of government facilities.
Acquisitions of vehicles, transportation equipment, household furnishings, industrial machinery, and generators were also postponed.
Furthermore, departments were instructed to refrain from awarding tenders or contracts for goods and services unless sufficient budgetary allocations were available.
The foregoing was in the efforts to recoup the over KSh 340 billion which the government was to lose following Ruto's decision to annul the Finance Bill 2024 following Kenyans' chaotic protests.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
