President William Ruto has assured civil servants that no jobs will be lost as the government embarks on the merger, restructuring, and dissolution of state corporations with overlapping functions.
In a statement released by State House Spokesperson Hussein Mohamed, the President emphasized that all employees from affected institutions would be absorbed into the public service.
“This is in line with the commitment to streamline government operations, reduce waste, and curb excesses. The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the Exchequer,” the statement read.
The President’s remarks come amid concerns that the restructuring could render thousands of civil servants jobless. However, Dr. Ruto reassured that no functions of the state corporations would be lost, and the decision was aimed solely at improving efficiency and cutting wastage of public resources.

The announcement followed a Cabinet meeting held at the Kakamega State Lodge, where the government approved the merger of 42 parastatals into 20, the dissolution of nine corporations, and the divestiture of 16 others.
“These reforms have been necessitated by increasing fiscal pressures, the demand for high-quality public services, and the growing public debt burden,” the Cabinet noted, highlighting the Sh94.4 billion in pending bills accumulated by state corporations as of March 31, 2024.
The National Treasury conducted an assessment of 271 state corporations, excluding those earmarked for privatization, to identify operational inefficiencies.
As part of the reforms, nine corporations will be dissolved, with their functions transferred to relevant ministries or state entities. Six corporations will undergo restructuring to better align their mandates, while 16 with outdated roles suitable for privatization will be divested or dissolved.
President Ruto reiterated that the changes are designed to enhance service delivery, ease the financial strain on the government, and foster greater efficiency within public institutions.