NAIROBI, Kenya, Jan 22 — President William Ruto’s Cabinet has approved sweeping reforms that include merging forty-two state corporations into twenty entities as part of fiscal cosolidation efforts.
The restructuring, State House said, aims to eliminate inefficiencies, improve service delivery, and reduce the financial strain on the national budget.
“These reforms have been necessitated by increasing fiscal pressures arising from constrained government resources, the demand for highquality public services, and the growing public debt burden,” the Cabinet Office said on Wednesday.
“Many State Corporations have struggled to meet their contractual and statutory obligations, leading to an accumulation of pending bills amounting to Sh94.4 billion as of March 31, 2024,” the brief released following a Cabinet meeting at the Kakamega State Lodge indicated.
In addition to mergers, nine state corporations will be dissolved, and their functions transferred to relevant ministries or other government entities.
Among those set for dissolution are the Kenya Tsetse Fly and Trypanosomiasis Eradication Council and the Kenya Fish Marketing Authority.
President Ruto emphasized on his commitment to run a lean, efficient, and responsive government adding that the decion will reduce waste and ensure that every public institution serves a clear purpose.
The Cabinet also announced plans to privatize sixteen state corporations with outdated mandates, further reducing the number of entities under direct government control.
The reforms are expected to alleviate fiscal pressures, streamline service delivery, and improve the overall governance of Kenya’s public sector.
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