Hundreds of employees at two government water agencies could find themselves in an uncertain position if Parliament approves proposed changes seeking to merge the institutions.
The Water (Amendment) Bill, 2026, which is currently before the National Assembly and undergoing public participation, proposes to abolish the National Water Harvesting and Storage Authority (NWHSA) and transfer its functions to the National Irrigation Authority (NIA).
The two agencies would then operate under a new institution to be known as the National Irrigation and Water Harvesting Authority.
While the proposed merger is being presented as part of efforts to streamline government operations and remove duplication, it has raised questions about what will happen to employees currently working for the two agencies.
The biggest uncertainty is for staff at NWHSA, whose legal foundation would be removed if the Bill is passed.
The proposed law seeks to repeal Sections 30 to 35 of the Water Act, provisions that establish the authority, its board, Chief Executive Officer and employment structure.
This means the current framework governing NWHSA employees would effectively come to an end once the new authority is established.
Nevertheless, the Bill does not specify anything about the dismissal of current employees or automatic redundancy of their jobs.
Neither does the Bill mention explicitly whether employees will be assimilated into the proposed new organization, leaving employees uncertain as to how this will work out.
The whole thing takes place in the wake of the restructuring process currently under way in state corporations, whereby many of these parastatals have been identified for merger, dissolution or transfer of functions.
On January 2025, the government revealed its intention to downsize the number of state corporations following review of 271 government parastatals by the National Treasury.
According to the proposal, the 42 state corporations will be merged into 20 parastatals in order to enhance efficiency and minimize overlap of duties.
The parastatals to be merged include the University Fund and Higher Education Loans Board, Kenya Tourism Board and Tourism Research Institute, Kenya Forest Service and Kenya Water Towers Agency.
Also among the institutions scheduled for restructuring is the Kenya Industrial Property Institute.
Another 16 institutions with outdated mandates were identified for possible divestiture or dissolution where their functions could be handled more efficiently by the private sector.
The proposed changes in the water sector now bring NWHSA and NIA employees into the same restructuring conversation.
For workers, the merger could mean new reporting structures, changes in job descriptions or adjustments to their terms of employment, depending on how the transition is eventually implemented.
Under the current Water Act, the Water Storage Authority has the power to employ staff it considers necessary to carry out its mandate, with their terms and conditions governed under the public service framework.
That provision would disappear if the amendment becomes law.
For now, however, there is no express provision in the Bill stating that employees will lose their jobs.
The fate of the workers is therefore likely to depend on the transition arrangements that Parliament and the government put in place if the proposed merger is approved.
