In a sweeping decision aimed at improving efficiency and cutting costs, the Cabinet, chaired by President William Ruto, approved the merger, dissolution, and privatization of numerous State Corporations.
The reforms, discussed during the first Cabinet meeting of the year at the State Lodge in Kakamega on January 21, 2025, form part of the government’s strategy to streamline operations and reduce reliance on the Exchequer.
The National Treasury conducted an assessment of 271 State Corporations and presented recommendations that will lead to significant restructuring.
“The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the Exchequer. The National Treasury assessed 271 State Corporations, excluding those earmarked for privatization,” Cabinet minutes read.
Below is the full list of affected corporations:
Corporations to be merged
42 State corporations are set to be merged into 20 entities.
“42 State Corporations with duplicating, overlapping or related mandates are proposed for mergers to form 20 entities,” Cabinet minutes stated.
They include:
1. University Fund and Higher Education Loans Board.
2. Kenya Tourism Board and Tourism Research Institute.
3. Export Processing Zones Authority and Special Economic Zones Authority.
4. Anti-Counterfeit Authority, Kenya Industrial Property Institute and Kenya Copyright Board.
5. Kenya Industrial Research and Development Institute and Kenya Industrial Estates.
6. Agricultural Finance Corporation and Commodities Fund.
7. Kenya Forest Service and Kenya Water Towers Agency.
8. Agricultural Development Corporation and Kenya Animal Genetic Resource Centre.
9. National Irrigation Authority and National Water Harvesting and Storage Authority.
10. Kenya Law Reform Commission and National Council for Law Reporting.
11. Tourism Promotion Fund and Tourism Fund.
12. Commission for University Education, Technical and Vocational Education and Training Authority and Kenya National Qualifications Authority.
13. Kenya Rural Roads Authority and Kenya Urban Roads Authority.
14. Kenya Investment Authority and Kenya Export Promotion and Branding Agency.
15. Water Services Regulatory Board, Water Regulatory Authority, Regional Center on Ground Water Resources, Education and Training and Research.
16. Kenya National Trading Corporation and National Cereals & Produce Board.
17. Uwezo Fund Women Enterprise Fund and Youth Enterprise Development Fund.
18. Kenya Medical Research Institute and Kenya Institute of Primate Research.
19. Kenya Plant Health Inspectorate Service and National Bio-Safety Authority.
20 Agriculture and Food Authority.
State corporations to be dissolved
The Cabinet recommended dissolving nine corporations whose mandates can be effectively handled by ministries.
“Nine State Corporations whose mandates can be performed under the Ministry are proposed for dissolution after the functions are transferred back to the Ministry or other relevant State Corporations,” the statement from the Cabinet said.
They include:
1. Kenya Tsetse Fly and Trypanosomiasis Eradication Council.
2. Kenya Fish Marketing Authority.
3. Centre for Mathematics, Science and Technology Education in Africa.
4. President’s Award – Kenya.
5. Nuclear Power and Energy Agency.
6. Kenya National Commission for UNESCO.
7. Kenya Film Classification Board.
8. National Council for Nomadic Education.
9. LAPSSET Corridor Development Authority.
Corporations set for privatization
The Cabinet recommended the divestiture or dissolution of 16 corporations whose mandates are outdated or services that can be provided by the private sector.
“16 State Corporations with outdated mandates or the good/service can be supplied by the private sector are proposed for divesture/ dissolution,” the Cabinet statement read.
They include:
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.
Corporations set for restructuring
The Cabinet recommended the restructuring of six state corporations for better performance.
“Six State Corporations are proposed for restructuring to align their mandates for better performance,” the Cabinet statement said.
They include:
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.
Public Funds to be declassified
The Cabinet stated that four public funds currently classified as state corporations should be declassified and returned to their respective ministries.
“The four public funds categorized as state corporations need to be declassified and reverted back to the Ministry with a strengthened/ more focused governance structure that will apply to all public funds,” the Cabinet minutes said.
They include:
1. Water Sector Trust Fund.
2. National Environment Trust Fund.
3. Sports, Arts and Social Development Fund.
4. Fish Levy Trust Fund.
Professional bodies and welfare society
The Cabinet also stated that 13 professional bodies currently classified as state corporations should be declassified and no longer funded through budgetary allocations.
“All professional bodies currently categorised as state corporations should be declassified and should not be financed through budgetary allocations,” the Cabinet statement said.
They 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.
12. Kenya Institute of Supplies Management.
13. Child Welfare Society of Kenya.
