Govt Rewards Performing Parastatal CEOs, Threatens Shutdown of Underperforming Agencies

The government has issued a threat to all public organisations that are underperforming, threatening to close them, risking thousands of jobs.

This follows a cabinet decision to dissolve and merge some parastatals.

While addressing the media at Kenya Pipeline Corporation (KPC) headquarters during the ongoing performance evaluation for Ministries, Departments, and Agencies (MDAs) for the 2023/2024 fiscal year, Eliud Owalo, the Deputy Chief of Staff in charge of performance and delivery management in the Executive Office of the President, warned the government is not joking.

Owalo said the government will begin awarding best-performing parastatal Chief Executive Officers (CEOs) and employees with more funding, among other things, while those that are underperforming will be allowed to "die a natural death." "Everybody, virtually everybody in the public service, is going to be held accountable.