- The government has sanctioned changes in a host of state corporations to enhance efficiency and cut operational costs.

A communique from the Head of Public Service Felik Koskei indicated that 42 agencies would be merged into 20 following a resolution by the Cabinet.

Another 25 will be dissolved, and their key function taken back to their parent ministries.

At the same time, the Cabinet resolved to restructure six state corporations and declassify four public funds and 13 professional bodies.

Koskei addressed a letter dated May 16 to the heads of various state corporations, communicating the upcoming reforms.

"Reference is made to the decision of the Cabinet as transmitted through the action letter. Referenced as dated 21st January 2025. It is notified that the Cabinet considered the proposed reforms for state corporations as submitted by the National Treasury and sanctioned varied reforms for implementation within the current financial year. The approved reforms are to be implemented through," partly read a dispatch from the Head of Public Service seen by

Consequently, contracts for officers in the affected agencies won't be renewed.

The Cabinet also sanctioned the end of any ongoing recruitment processes in the corporations.

"A moratorium is issued on recruitment and renewal of contracts for chief executive officers or any other officers serving on contract terms, at the lapse of their current tenure. That any ongoing recruitment processes of staff in any cadre are halted forthwith. Any implementation or approval of new human resource policies, personal emoluments and benefits of any kind, staff organisation, salary structures, or roll out of any new capital projects is hereby suspended," read the notice.

Among the affected agencies is the University Fund, which will be combined with the Higher Education Loans Board (HELB).

The Kenya Tourism Board will be integrated with the Tourism Research Institute, while the Export Processing Zones Authority will be consolidated with the Special Economic Zones Authority.

The Kenya Industrial Property Institute is set to merge with the Anti-Counterfeit Authority, while the Kenya Copyright Board will be unified with the Kenya Industrial Research and Development Institute and Kenya Industrial Estates.

The Agricultural Finance Corporation will merge with the Commodities Fund, and the Kenya Forest Service (KFS) will integrate with the Kenya Water Towers Agency.

The Agricultural Development Corporation will be merged with the Kenya Animal Genetic Resource Centre; the National Irrigation Authority merged with the National Water Harvesting and Storage Authority.

Others are;

Nine agencies have been earmarked for dissolution, with their functions retained in their relevant ministries.

They are the;

The Cabinet also identified 16 state corporations which have outlived their purposes and whose mandates can be sourced from the private sector.

They are;

Ruto's regime has often undertaken drastic reforms in the state offices for, among other things, austerity.

Last year, the National Treasury announced the scrapping of car and house loans for civil servants.

Additionally, the Exchequer declared a halt on expenditures related to the renovation of government facilities.

Acquisitions of vehicles, transportation equipment, household furnishings, industrial machinery, and generators were also postponed.

Furthermore, departments were instructed to refrain from awarding tenders or contracts for goods and services unless sufficient budgetary allocations were available.

The foregoing was in the efforts to recoup the over KSh 340 billion which the government was to lose following Ruto's decision to annul the Finance Bill 2024 following Kenyans' chaotic protests.

Source: TUKO.co.ke