The government has frozen hiring and renewal of contracts across 42 State corporations targeted for restructuring, putting the livelihoods of hundreds of workers, including top executives in jeopardy.
This follows a memo by Head of Public Service Felix Koskei that communicated the Cabinet's approval of 42 State corporations to be merged into 20 entities while 25 others are set to be dissolved with their residual functions reverting to the respective parent ministries.
The memo also communicated that six State corporations will be restructured to align their mandates with performance expectations while four public Funds will be declassified and their functions transferred back to the relevant ministries.
According to Koskei 13 professional bodies currently designated as State Corporations will also be declassified.
