The Cabinet has given the green light to a comprehensive set of recommendations aimed at reforming State Corporations in a bid to streamline government operations, reduce waste, and curb inefficiencies.
The changes were approved during the first Cabinet meeting of the year, chaired by President William Ruto at State Lodge in Kakamega.
As part of these reforms, nine State Corporations will be dissolved, with their functions transferred to the relevant ministries or other State entities. The dissolved corporations include:
- President’s Award – Kenya
- Kenya Film Classification Board
- Nuclear Power and Energy Agency
- LAPSSET Corridor Development Authority
- Kenya National Commission for UNESCO
- Kenya Fish Marketing Authority
- National Council for Nomadic Education
- Kenya Tsetse Fly and Trypanosomiasis Eradication Council
- Centre for Mathematics, Science and Technology Education in Africa
In addition, 16 corporations with outdated functions that can be better handled by the private sector will either be divested or dissolved.
The reforms also include the merging of 42 State Corporations with overlapping or related mandates into 20 entities. This restructuring is aimed at improving efficiency and eliminating redundancy. Notable mergers include:
- The University Fund with the Higher Education Loans Board
- The Anti-Counterfeit Authority with the Kenya Industrial Property Institute and the Kenya Copyright Board
- The Kenya Forest Service with the Kenya Water Towers Agency
- The National Irrigation Authority with the National Water Harvesting and Storage Authority
- The Commission for University Education with the Kenya National Qualifications Authority and the Technical and Vocational Education and Training Authority
- The Kenya Rural Roads Authority with the Kenya Urban Roads Authority
- The Kenya Tourism Board with the Tourism Research Institute
- The Export Processing Zones Authority with the Special Economic Zones Authority
Moreover, six State Corporations will undergo restructuring to better align their mandates and improve performance.
In a major change, four public funds currently classified as State Corporations will be declassified and reassigned to the relevant ministries, along with an enhanced governance framework. All professional organizations currently designated as State Corporations will also be declassified and will no longer receive government budget allocations.
“The reforms aim to address operational and financial inefficiencies, improve service delivery, and reduce reliance on the Exchequer,” the Cabinet statement read.
The Cabinet explained that these reforms are necessary due to increasing fiscal pressures from limited government resources, the demand for high-quality public services, and the growing public debt burden.
These reforms stem from an assessment by the National Treasury of 271 State Corporations, excluding those slated for privatization.
