The Kenyan government has intensified its push to overhaul state corporations, with the Multi-Agency Technical Working Committee finalizing Phase One reforms targeting 43 entities.
Head of Public Service Felix Koskei issued a stern directive for full compliance from all affected institutions, emphasizing legislative adjustments, staff redeployment, and resource reallocation as key priorities .
The reforms, approved by the Cabinet earlier this year, aim to eliminate redundancy, curb fiscal waste, and enhance service delivery.
Phase One includes mergers and dissolutions 43 state corporations will be consolidated into 20 entities, while 25 others face dissolution, with functions absorbed by parent ministries.
the plan will also see Procurement Overhaul, A mandatory shift to the Electronic Government Procurement (e-GP) system by July 1, 2025, to curb corruption and cartel collusion.
Koskei warned CEOs and boards against flouting oversight mechanisms, citing instances of irregular tenders and non-compliance with youth/women procurement quotas.
“The Multi-Agency Technical Working Committee is now finalizing the implementation of reforms for 43 identified entities under Phase One. This includes legislative processing, staff deployment, and resource reallocation," said Koskei.Professional bodies like the Engineers Board of Kenya raised alarms over the abrupt declassification of some entities, urging safeguards for employees’ roles and benefits during transitions . Critics also question the transparency of the process, given Kenya’s history of policy reversals .
Koskei stressed urgency, stating, “This is not about shrinking the state but making it leaner and citizen-focused” . The reforms align with President Ruto’s austerity measures amid public discontent over taxation and debt.
