The Cabinet on Tuesday approved a proposal to dissolve nine state corporations whose mandates can be performed by their parent ministries.
The decision followed an assessment of 271 state corporations by the National Treasury, excluding those earmarked for privatisation.
The nine include the Kenya Tsetse Fly and Trypanosomiasis Eradication Council, Kenya Fish Marketing Authority, Centre for Mathematics, Science and Technology Education in Africa, President's Award – Kenya and Nuclear Power and Energy Agency.
Others are Kenya National Commission for UNESCO, Kenya Film Classification Board, National Council for Nomadic Education and LAPSSET Corridor Development Authority.
The decision was reached during the first Cabinet meeting of 2025 held at State Lodge, Kakamega, and chaired by President William Ruto.
The Cabinet noted that many state corporations have been struggling to meet their contractual and statutory obligations, leading to an accumulation of pending bills amounting to Sh94.4 billion as of March 31, 2024.
“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,” a Cabinet dispatch read in part.
It added that the reforms will address operational and financial inefficiencies, enhance service delivery and reduce reliance on public funds.
The meeting resolved that the dissolution will follow the transfer of functions of the nine entities back to the ministries or other relevant state corporations.
The Cabinet further approved the merger of 42 State Corporations with overlapping or related mandates into 20 entities to improve operational efficiency and eliminate redundancy.
Sixteen corporations with outdated functions that can be provided by the private sector will also be divested or dissolved.
Further, six state Corporations will undergo restructuring to better align their mandates and enhance performance.
“Additionally, four public funds currently classified as State corporations will be declassified and returned to the relevant ministries with a strengthened governance framework,” the Cabinet said.
These are Water Sector Trust Fund, National Environment Trust Fund, Sports, Arts and Social Development Fund and Fish Levy Trust Fund.
