The Kenya Kwanza government on Tuesday announced mega plans to dissolve nine state corporations and merge 42 others as part of a sweeping reform program aimed at improving efficiency and reducing the government's wage bill.
The landmark decision, the most consequential in Kenya's public service since the country's independence was announced by State House following a Cabinet meeting chaired by President William Ruto.
The shock decision comes amid growing fiscal pressures on the cash-strapped Kenya Kwanza government and a push by the International Monetary Fund (IMF) and the World Bank for Kenya to reform inefficient state-owned enterprises. "The National Treasury assessed 271 State Corporations, excluding those earmarked for privatization," a statement from State House said. "The reforms include merging 42 State Corporations with overlapping or related mandates into 20 entities to improve operational efficiency and eliminate redundancy." Under the sweeping reforms, nine State Corporations will be dissolved, with their functions transferred to relevant ministries or other State entities.
These include the Kenya Tsetse Fly and Trypanosomiasis Eradication Council, the Kenya Fish Marketing Authority, the Centre for Mathematics, Science and Technology Education in Africa, the President's Award - Kenya, the Nuclear Power and Energy Agency, the Kenya National Commission for UNESCO, the Kenya Film Classification Board, the National Council for Nomadic Education, and the LAPSSET Corridor Development Authority.
