The Cabinet on Tuesday approved a series of recommendations aimed at reforming State Corporations in a bid to streamline government operations, reduce waste, and curb excesses.
The changes were approved at the first cabinet meeting of the year, chaired by President William Ruto in Kakamega County.
As part of these reforms, nine State Corporations will be dissolved, with their functions transferred to the relevant ministries or other State entities.
Additionally, 16 corporations with outdated functions that could be provided by the private sector are set to be either divested or dissolved.
The reforms also include the merging of 42 State Corporations with overlapping or related mandates into 20 entities, which aims to improve operational efficiency and eliminate redundancy.
At the same time, six State Corporations will undergo restructuring to better align their mandates and enhance performance.
In the significant changes, four public funds currently classified as State Corporations will be declassified and returned to the relevant ministries, accompanied by a strengthened governance framework.
All professional organizations currently classified as State Corporations will also be declassified and will no longer receive government budgetary allocations.
“The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the Exchequer,” stated the Cabinet dispatch.
The Cabinet explained that these reforms have become necessary due to increasing fiscal pressures resulting from constrained government resources, the demand for high-quality public services, and the rising public debt burden.
The announced reforms are a result of an assessment by the National Treasury of 271 State Corporations, excluding those designated for privatization.
