By Shadrack Nyakoe
Kenya is taking significant steps to address the challenges faced by State Corporations and Government-Owned Enterprises (GOEs) through a comprehensive process of privatization and restructuring.
The aim is to privatize GOEs whose mandates are no longer relevant and to streamline state corporations by merging them or transferring them back to parent ministries or relevant state entities.
This will eliminate duplication of functions and reduce the burden on taxpayers.
In 2023, Treasury and Economic Planning Cabinet Secretary Njuguna Ndung’u approved the Ownership Policy for GOEs, which serves as a crucial framework for governance reforms aimed at maximizing the potential of these entities.
To provide a legal basis for this policy and ensure its effective implementation, the government has drafted the Government Owned Enterprises Bill, 2024.
This bill is currently undergoing public participation, allowing stakeholders to provide input and feedback.
Additionally, the Government has drafted the Government Investment Regulations, 2024, to establish a framework for the efficient and effective management of government investments.
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These regulations aim to enhance transparency, accountability, and performance in the management of public resources.
The restructuring and privatization efforts are expected to make state corporations more efficient, reduce redundancy, and improve service delivery to the public.
CS Njuguna Ndung’u said by implementing these reforms, the Government of Kenya seeks to optimize the operations of state corporations and ensure they contribute effectively to the country’s economic growth and development.