Govt Merger Of State Agencies Will Not Lead To Job Losses – State House

State House spokesperson Hussein Mohamed has reassured Kenyans that no jobs will be lost following the government’s decision to merge 42 state agencies and dissolve nine others.

While responding to a local media publication Wednesday, Mohamed emphasized that all affected employees would be absorbed into the public service, ensuring job security for workers impacted by the reforms.

“No state corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the Public Service,” he stated.

The restructuring plan, approved during a Cabinet meeting chaired by President William Ruto at the Kakamega State Lodge, aims to streamline government operations by addressing inefficiencies, curbing waste, and reducing reliance on the Exchequer.

The government also highlighted that the reforms are in response to increasing fiscal pressures, growing public debt, and the demand for better public services.

According to a report presented by the National Treasury, several corporations have struggled to meet their statutory obligations, leading to pending bills amounting to Sh94.4 billion as of March 31, 2024.

Also Read: Cabinet Approves Merging Of 42 State Agencies, 9 To Be Scrapped

Here is the list of 42 State corporations set for merging:

1. University Fund & Higher Education Loans Board
2. Kenya Tourism Board & Tourism Research Institute
3. Export Processing Zones Authority & Special Economic Zones Authority
4. Anti-Counterfeit Authority, Kenya Industrial Property Institute & Kenya Copyright Board
5. Kenya Industrial Research and Development Institute & Kenya Industrial Estates
6. Agricultural Finance Corporation & Commodities Fund
7. Kenya Forest Service & Kenya Water Towers Agency
8. Agricultural Development Corporation & Kenya Animal Genetic Resource Centre
9. National Irrigation Authority & National Water Harvesting and Storage Authority
10. Kenya Law Reform Commission & National Council for Law Reporting
11. Tourism Promotion Fund & Tourism Fund

12 Commission for University Education, Technical and Vocational Education and Training Authority and Kenya National Qualifications Authority

1. Kenya Rural Roads Authority & Kenya Urban Roads Authority
2. Kenya Investment Authority & Kenya Export Promotion and Branding Agency
3. Water Services Regulatory Board, Water Regulatory Authority & Regional Center on Ground Water Resources, Education, Training and Research
4. Kenya National Trading Corporation & National Cereals & Produce Board
5. Uwezo Fund, Women Enterprise Fund & Youth Enterprise Development Fund
6. Kenya Medical Research Institute & Kenya Institute of Primate Research
7. Kenya Plant Health Inspectorate Service & National Bio-Safety Authority
8. Agriculture and Food Authority

Dissolution of Nine Corporations

Nine (9) State Corporations including the Kenya Film Classification Board, LAPSSET Corridor Development Authority, Kenya Fish Marketing Authority, Centre for Mathematics, Science and Technology Education in Africa will be dissolved and their functions transferred back to the parent Ministry.

Others are the President’s Award – Kenya, Nuclear Power and Energy Agency, Kenya National Commission for UNESCO, National Council for Nomadic Education and the Kenya Tsetse Fly and Trypanosomiasis Eradication Council.

Divestiture of Non-Essential Entities

Sixteen corporations, including the Numerical Machining Complex and the Kenya Fishing Industries Corporation, will be divested or dissolved.

These entities have been deemed non-essential or better suited for private sector management.

1 Numerical Machining Complex

2 Scrap Metal Council

3 Kenya Fishing Industries Corporation

4 Jomo Kenyatta Foundation

5 Pyrethrum Processing Company of Kenya Ltd

6 Kenya National Shipping Line

7 School Equipment Production Unit

8 Kenya Yearbook Editorial Board

9 Kenya National Assurance Company

10 Coast Development Authority

11 Ewaso Ng’iro South Development Authority

12 Ewaso Ng’iro North Development Authority

13 Kerio Valley Development Authority

14 Lake Basin Development Authority

15 Tana and Athi Rivers Development Authority

16 Kenya Post Office Savings Bank

Restructuring for Enhanced Performance

Six key corporations, including Kenya Utalii College and the Postal Corporation of Kenya, will undergo restructuring to align with their mandates and improve performance.

1 Kenya Utalii College

2 Postal Corporation of Kenya

3 Bomas of Kenya

4 National Syndemic Diseases Control Council

5 Kenya Roads Board

6 National Housing Corporation

Declassification of Public Funds and Professional Bodies

Public funds, such as the Sports, Arts, and Social Development Fund, will be declassified and placed under their respective ministries with strengthened governance structures.

Water Sector Trust Fund

National Environment Trust Fund

Sports, Arts and Social Development Fund

Fish Levy Trust Fund

Similarly, professional organizations like the Nursing Council of Kenya and the Engineers Board of Kenya will be declassified and will no longer receive government budgetary allocations.

Others include;

1 Hydrologists Registration Board

2 Clinical Officers Authority

3 Council of the Institute of Nutritionists and Dieticians

4 Kenya Health Professionals Oversight Authority

5 Kenya Medical Laboratory Technicians and Technologists Board

6 Kenya Medical Practitioners and Dentists Council

7 Public Health Officers and Technicians Council

8 Nursing Council of Kenya

9 Engineers Board of Kenya

10 Institute of Certified Investment and Financial Analysts

11 Institute of Human Resource Management

12 Kenya Institute of Supplies Management

13 Child Welfare Society of Kenya