By Antynet Ford
Kenyans have been assured that no one will lose their job following the resolution to merge 42 state-owned corporations into twenty entities.
This is after Kenyans raised concerns about potential layoffs among affected employees in the move the government says is aimed at improving operational efficiency and eliminating redundancy.
Statehouse spokesperson Hussein Mohammed has refuted claims that jobs will be lost.
“No state corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the public service,” the spokesperson stated.
He noted that the reforms are set to streamline government operations, reduce wastage, and curb excesses without compromising workers’ livelihoods.
Hussein added that the restructuring will tackle operational and financial inefficiencies while enhancing service delivery and reducing the financial burden on the exchequer.
Following a cabinet meeting at the Kakamega state lodge, the government announced plans to dissolve nine state corporations and their functions transferred to relevant ministries or other State entities, while 16 corporations with outdated functions being provided by the private sector being divested or dissolved.
Six State Corporations are set to undergo restructuring to better align their mandates and enhance performance with an additional four public funds currently classified as State Corporations being declassified and returned to the relevant ministries with a strengthened governance framework.
These include the Kenya Roads Board, National Housing Corporation, Postal Corporation of Kenya, and Kenya Utalii College.
Four public funds currently listed as state corporations will be removed from that classification and returned to their respective ministries under a new governance structure.
Professional organizations currently categorized as State Corporations will also be declassified and will no longer receive government budgetary allocations.
The cabinet said the reforms have been necessitated by increasing fiscal pressures
arising from constrained government resources, the demand for high-quality public services, and the growing public debt burden.
“Many State Corporations have struggled to meet their contractual and statutory obligations, leading to an accumulation of pending bills amounting to KSh94.4 billion as of March 31, 2024,” the circular from the cabinet stated.
The University Fund and the Higher Education Loans Board (HELB) will merge into one body, as will the Kenya Tourism Board and the Tourism Research Institute.
The Anti-Counterfeit Authority, Kenya Industrial Property Institute and Kenya Copyright Board will also be combined into a single parastatal. Similarly, the Kenya Forest Service and Kenya Water Towers Agency will merge.
Among the nine to be dissolved are the President’s Award, Kenya Nuclear Power and Energy Agency, Kenya National Commission for UNESCO, and the Kenya Film Classification Board.