Government To Dissolve 47 State Corporations In Austerity Measure

President William Ruto announced the dissolution of 47 State Corporations on Friday.

The President cited overlapping and duplicative functions as the primary reasons for this decision, which aims to eliminate unnecessary operational and maintenance costs.

Ruto explained that the functions of these corporations would be integrated into their respective line ministries.

“Staff currently employed by the affected corporations will be transferred to ministries and other state agencies,” he stated.

This decision follows President Ruto’s stern warning in March to loss-making parastatals, emphasizing the need for stringent financial management and threatening closure for those unable to improve their fortunes.

The National Treasury and the President’s Council of Economic Advisors recently proposed a restructuring plan that could see at least 20 chief executives lose their positions.

These reforms, driven by conditions set by the International Monetary Fund (IMF), aim to streamline operations and reduce financial wastage within state corporations.

Key recommendations from the restructuring plan included:

1. Postal Corporation of Kenya (PCK) and Kenya National Shipping Line (KNSL)
   • Mandate: PCK manages postal services and financial services via post offices, while KNSL oversees maritime shipping operations.
   • Change: KNSL’s functions will be absorbed by PCK to improve cargo shipment, clearing, forwarding, and last-mile delivery by partnering with strategic investors.
2. Kenya National Qualifications Authority (KNQA) and Commission for University Education (CUE)
   • Mandate: KNQA regulates qualifications to ensure standards and quality, while CUE accredits universities and maintains standards for higher education.
   • Change: KNQA and CUE will merge to form a new regulatory body focusing on quality education and qualifications.
3. Kenya Export Processing Zones Authority (EPZA) and Special Economic Zones Authority (SEZA)
   • Mandate: EPZA promotes export-oriented industrial activities, while SEZA manages and promotes special economic zones.
   • Change: EPZA will merge with SEZA to create a unified body fostering industrial growth through processing and special zones.
4. Kenya Academy of Sports (KAS) and Sports Kenya
   • Mandate: KAS focuses on sports development and talent nurturing, while Sports Kenya manages sports facilities and promotes sports.
   • Change: KAS will merge with Sports Kenya to form a single entity dedicated to the development and promotion of sports.
5. Kenya National Innovation Agency (KENIA) and National Commission for Science, Technology, and Innovation (NACOSTI)
   • Mandate: KENIA promotes innovation, while NACOSTI regulates and promotes research and development in science and technology.
   • Change: KENIA and NACOSTI will merge to enhance research and innovation through a well-resourced fund.
6. Uwezo Fund, Youth Enterprise Development Fund (YEDF), and Women Enterprise Fund (WEF)
   • Mandate: These funds provide financial support to youth, women, and marginalized groups to promote entrepreneurship.
   • Change: The three funds will merge to create a well-resourced entity aimed at supporting MSME groups, youth, and PWDs.
7. Kenya Industrial Property Institute (KIPI) and Kenya Copyrights Board (KECOBO)
   • Mandate: KIPI handles industrial property rights, while KECOBO manages copyrights and intellectual property.
   • Change: KIPI will merge with KECOBO to form a single entity strengthening patent and industrial property protection.
8. Kenya Export Promotion and Branding Agency (KEPROBA), Kenya Investment Authority (KenInvest), and Kenya Tourism Board (KTB)
   • Mandate: KEPROBA promotes Kenyan products abroad, KenInvest attracts and facilitates investment, and KTB markets Kenya as a tourist destination.
   • Change: These agencies will merge to enhance promotion, marketing, and investment in Kenya.
9. Agricultural Finance Corporation (AFC) and Commodities Fund
   • Mandate: AFC provides credit for agricultural development, while the Commodities Fund supports farmers’ financial needs.
   • Change: AFC will merge with the Commodities Fund to better support food production and security.
10. Kenya Law Reform Commission (KLRC) and National Council for Law Reporting (NCLR)
    • Mandate: KLRC advises on law reform, while NCLR publishes laws and legal information.
    • Change: KLRC will merge with NCLR to enhance coordination in law reform and publication.
11. National Cancer Institute (NCI) and National Syndemic Diseases Control Council (NSDCC)
    • Mandate: NCI focuses on cancer control and management, while NSDCC addresses syndemic diseases.
    • Change: NCI will merge with NSDCC to improve coordination in managing cancer and syndemic diseases.
12. National Drought Management Authority (NDMA) and Regional Center on Ground Water Resources (RCGWR)
    • Mandate: NDMA manages drought response, while RCGWR focuses on groundwater research and management.
    • Change: NDMA will merge with RCGWR to strengthen water resource management and drought response.
13. National Honors Council and President’s Award-Kenya
    • Mandate: The National Honors Council oversees state awards, while the President’s Award-Kenya promotes youth development through awards.
    • Change: The two entities will merge to streamline the identification and awarding process for distinguished individuals.
14. Bomas of Kenya and Kenya Cultural Centre
    • Mandate: Bomas of Kenya showcases Kenya’s cultural heritage, while Kenya Cultural Centre promotes the arts.
    • Change: The two institutions will merge to enhance the promotion of Kenya’s heritage and cultural diversity.