Mbadi explains job security of state employees in 2025 reforms
With the debate regarding the Finance Bill 2025 gaining momentum and expected reforms, National Treasury Cabinet Secretary John Mbadi has come out to explain the job security of hundreds of state employees.
During a town hall meeting on Friday, May 16, 2025, Mbadi confirmed that the national government is more likely to continue with reforms targeting state corporations and agencies.
The CS made it clear that some of those state agencies would be dissolved, merged, or even reassigned to other ministries.
However, CS Mbadi made it clear that employees would not lose their jobs in the process.
He allayed the fear of massive job losses in the 2025/26 financial year, maintaining that affected state employees would be absorbed into other agencies.
“I don’t see job losses because even state owned enterprises (SOE) reforms that we are bringing, we are saying that working in these parastatals or state enterprises, which we are either merging, dissolving, or reassigning their functions to other ministries, the staff working in those institutions will then be absorbed elsewhere in government,” Mbadi stated.
Slow down on recruitment
At the same time, Mbadi hinted that with the expected reforms, the government could be compelled to slow down on recruitments. The vocal CS, who joined President William Ruto’s cabinet in the broad-based government arrangement, detailed that workers from merged agencies could be tapped to fill various government roles.
Nonetheless, the CS elaborated that to an extent where the agencies would be compelled to release their employees, the government would ensure they get a proper send-off package.
“Instead of the government recruiting more, we will be resigning these employees, but even if some people will go home, they should be going home in a more structured manner and maybe paid through an agreement,” Mbadi stated.
“But we are not anticipating job losses in 2025,” he insisted.
On Finance Bill
On the Finance Bill 2025, Mbadi reiterated that it seeks to remove ambiguity and streamline taxation policies. He vowed to go against tax cheats.
“Before muanguke na hii Finance Bill yangu, I want you to understand what is in the bill. Finance Bill tries to amend various legislations on taxes to bring clarity where there is ambiguity,” Mbadi stated.
“We are targeting a problem in our laws called tax expenditure, which is tax refunds. We are receiving a lot of fake claims from businesspeople and accountants.”
