Cabinet approves merging of 42 State agencies, 9 to be scrapped, See List

Published By The Statesman For The Statesman Digital
2 hours ago

The Cabinet has approved sweeping reforms that will see 42 State corporations considered to have related or overlapping functions merged into 20 agencies.

The measures, announced following a Cabinet meeting chaired by President William Ruto at the Kakamega State Lodge on Tuesday, will also see several government agencies dissolved and others restructured to reduce the wastage of public resources.

"These 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," a despatch from the Cabinet meeting reads in part.

According to the Despatch, the National Treasury conducted an assessment of 271 State corporations, excluding those earmarked for privatization, identifying areas of inefficiency and redundancy.

The report revealed that many corporations have struggled to meet their statutory obligations, resulting in pending bills amounting to Ksh.94.4 billion as of March 31, 2024.

Mergers to Reduce Overlaps

Top on the list of the 42 State corporations proposed for mergers is the University Fund which is set to be merged with the Higher Education Loans Board and the Kenya Rural Roads Authority which will be consolidated with the Kenya Urban Roads Authority.

Here is the list of 42 State corporations set for merging:

1. University Fund & Higher Education Loans Board

2. Kenya Tourism Board & Tourism Research Institute

3. Export Processing Zones Authority & Special Economic Zones Authority

4. Anti-Counterfeit Authority, Kenya Industrial Property Institute & Kenya Copyright Board

5. Kenya Industrial Research and Development Institute & Kenya Industrial Estates

6. Agricultural Finance Corporation & Commodities Fund

7. Kenya Forest Service & Kenya Water Towers Agency

8. Agricultural Development Corporation & Kenya Animal Genetic Resource Centre

9. National Irrigation Authority & National Water Harvesting and Storage Authority

10. Kenya Law Reform Commission & National Council for Law Reporting

11. Tourism Promotion Fund & Tourism Fund

12 Commission for University Education, Technical and Vocational Education and Training Authority and Kenya National Qualifications Authority

13. Kenya Rural Roads Authority & Kenya Urban Roads Authority

14. Kenya Investment Authority & Kenya Export Promotion and Branding Agency

15. Water Services Regulatory Board, Water Regulatory Authority & Regional Center on Ground Water Resources, Education, Training and Research

16. Kenya National Trading Corporation & National Cereals & Produce Board

17. Uwezo Fund, Women Enterprise Fund & Youth Enterprise Development Fund

18. Kenya Medical Research Institute & Kenya Institute of Primate Research

19. Kenya Plant Health Inspectorate Service & National Bio-Safety Authority

20. Agriculture and Food Authority

Dissolution of Nine Corporations

Nine (9) State Corporations including the Kenya Film Classification Board, LAPSSET Corridor Development Authority, Kenya Fish Marketing Authority, Centre for Mathematics, Science and Technology Education in Africa will be dissolved and their functions transferred back to the parent Ministry.

Others are the President's Award - Kenya, Nuclear Power and Energy Agency, Kenya National Commission for UNESCO, National Council for Nomadic Education and the Kenya Tsetse Fly and Trypanosomiasis Eradication Council.

Divestiture of Non-Essential Entities

Sixteen corporations, including the Numerical Machining Complex and the Kenya Fishing Industries Corporation, will be divested or dissolved. These entities have been deemed non-essential or better suited for private sector management.

1 Numerical Machining Complex

2 Scrap Metal Council

3 Kenya Fishing Industries Corporation

4 Jomo Kenyatta Foundation

5 Pyrethrum Processing Company of Kenya Ltd

6 Kenya National Shipping Line

7 School Equipment Production Unit

8 Kenya Yearbook Editorial Board

9 Kenya National Assurance Company

10 Coast Development Authority

11 Ewaso Ng'iro South Development Authority

12 Ewaso Ng'iro North Development Authority

13 Kerio Valley Development Authority

14 Lake Basin Development Authority

15 Tana and Athi Rivers Development Authority

16 Kenya Post Office Savings Bank

Restructuring for Enhanced Performance

Six key corporations, including Kenya Utalii College and the Postal Corporation of Kenya, will undergo restructuring to align with their mandates and improve performance.

1 Kenya Utalii College

2 Postal Corporation of Kenya

3 Bomas of Kenya

4 National Syndemic Diseases Control Council

5 Kenya Roads Board

6 National Housing Corporation

Declassification of Public Funds and Professional Bodies

Public funds, such as the Sports, Arts, and Social Development Fund, will be declassified and placed under their respective ministries with strengthened governance structures.

Water Sector Trust Fund
National Environment Trust Fund
Sports, Arts and Social Development Fund
Fish Levy Trust Fund

Similarly, professional organizations like the Nursing Council of Kenya and the Engineers Board of Kenya will be declassified and will no longer receive government budgetary allocations.

Others include;

1 Hydrologists Registration Board

2 Clinical Officers Authority

3 Council of the Institute of Nutritionists and Dieticians

4 Kenya Health Professionals Oversight Authority

5 Kenya Medical Laboratory Technicians and Technologists Board

6 Kenya Medical Practitioners and Dentists Council

7 Public Health Officers and Technicians Council

8 Nursing Council of Kenya

9 Engineers Board of Kenya

10 Institute of Certified Investment and Financial Analysts

11 Institute of Human Resource Management