Cabinet meeting at Kakamega State Lodge on January 21, 2025/PCSThe Cabinet on Tuesday proposed the dissolution of 16 state corporations with outdated mandates.
Also among the 16 are corporations that provide goods or services that can be supplied by the private sector.
The decision of the Cabinet was arrived at during a meeting chaired by President William Ruto at State Lodge in Kakamega.
It was the first Cabinet meeting of 2025, during which the
President urged his Cabinet to seize the unique opportunity presented by the
broad-based government to drive transformative change in Kenya.
The corporations to be dissolved 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. Tana and Athi Rivers Development Authority
During the meeting, Ruto noted that significant progress has
been made in laying the foundation for the Bottom-Up Economic Transformation
Agenda.
The President reaffirmed his administration’s commitment to sustaining and accelerating these initiatives to ensure economic growth and improved livelihoods for all Kenyans.
In line with the commitment to streamline government operations, reduce waste, and curb excesses, the Cabinet approved a series of recommendations aimed at reforming state corporations.
The reforms aim to 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 privatisation.
The reforms include merging 42 state corporations with overlapping or related mandates into 20 entities to improve operational efficiency and eliminate redundancy.
Nine state corporations will be dissolved, with their functions transferred to relevant ministries or other state entities.
Six state corporations will undergo restructuring to better align their mandates and enhance performance.
Increasing fiscal pressures arising from constrained government resources, demand for high quality public services, and the growing public debt burden have necessitated the reforms.