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84 CEOs, political bigwigs stare at job losses in Ruto reforms

Cabinet on Tuesday okayed mergers, dissolution and restructuring of a number of the agencies.

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by LUKE AWICH

Realtime23 January 2025 - 05:00
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In Summary


  • According to the plan, 42 state corporations with overlapping mandates will be merged into 20.
  • Nine will be dissolved and their functions taken to line ministries while 16 with outdated mandates will be dissolved entirely.

President William Ruto addresses residents yesterday after the launch of the construction of Luanda modern market/PCS


Former governors and MPs are among big state corporation bosses whose jobs are on the line in a radical purge that could sink careers of up to 84 chief executive officers.

In a bold move to cut over-dependence on the exchequer by non-profitable state entities, the Cabinet on Tuesday okayed mergers, dissolution and restructuring of a number of the agencies.

The move will come with many casualties.

According to the plan, 42 state corporations with overlapping mandates will be merged into 20.

Nine will be dissolved and their functions taken to line ministries while 16 with outdated mandates will be dissolved entirely.

The government will also restructure six agencies to better align their mandates.

The purge also targets 13 professional bodies currently classified as state corporations, which the government will no longer bankroll.

The announcement has sent shockwaves through government, with many fearing for their jobs after their entities were earmarked for either merger or dissolution.

Some of the CEOs likely to be affected in the shake-up include University Fund CEO Geoffrey Monari and Higher Education Loans Board’s Charles Ringera.

Either Monari or Ringera will be a casualty as the funds will be merged and a new body created under a single CEO.

The government will decide which of the CEOs will be retained after the merger.

A choice will also be made between Kenya Rural roads Authority director general Philemon Kandie and his Kenya Urban Roads Authority counterpart Silas Kinoti after the two entities are collapsed into one.

Peter Lengapiani (Uwezo Fund), Rachael Musyoki (Women Enterprise Fund) and Josiah Moriasi (Youth Enterprise Fund) have their respective funds earmarked for a merger, meaning only one will survive the purge.

A decision will also be made regarding Prof Mike Kuria (CEO, Commission for University Education), Dr Kipkirui Langat (Technical and Vocational Education and Training Authority) and Dr Alice Kandie of Kenya National Qualifications Authority, whose institutions perform almost the same mandate.

Tourism Promotion Fund’s John Makona and his Tourism Fund counterpart David Mwangi are facing the axe under the reform plan.

The axe will also fall on either Joash Dache (Kenya Law Reform Commission) or Jack Mwimali (National Council for Law Reporting).

The changes will go with either National Irrigation Authority CEO Charles Muasya or his National Water Harvesting and Storage Authority counterpart Julius Mugun.

Several CEOs will find themselves jobless as their entities have been expressly marked for dissolution.

Also targeted are Seth Onyango (Kenya Tsetse Fly and Trypanosomiasis Eradication Council), Margaret Kiogora (President’s Award Kenya), Harun Yusuf (Nomadic Education in Kenya), Wycliffe Ochiaga (Lake Basin Development Authority) and Pius Mutisya (Centre for Mathematics, Science and Technology Education in Africa.

Others are Justus Wabuyabo (Nuclear Power and Energy Agency), James Njogu (Kenya National Commission for Unesco), David Rono (Scrap Metal Council), Abdallah Hatimy (Kenya National Shipping Line) and Lilian Kimeto (Kenya Year Book editorial Board).

State House has, however, moved to allay fears of job losses among civil servants working in the affected state corporations.

In a statement, State House Spokesperson Hussein Mohamed said all staff in affected institutions will be absorbed into the public service.

“No state corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the Public Service,” he said.

“This is in line with the commitment to streamline government operations, reduce waste and curb excesses. The reforms will address operational and financial inefficiencies, enhance service deliver and reduce reliance on the exchequer.”

Also bracing for the impact of the reforms are former MPs and governors who were given a safe landing to chair boards of the agencies after losing elections.

Some of the leaders whose agencies are either facing mergers or scrapping include former Tigania East MP Josphat Kabeabea, who chairs board of Anti-Counterfeit Authority, ex-Cherengany MP Joshua Kutuny (Kenya Copyright Board) and former lawmaker Peter Mositet (Kenya Industrial Reasearch and Development Institute).

Others are former Kericho Deputy Governor Lily Ng’ok (Kenya Industrial Estates), ex-Kisauni MP Ali Mbogo (Lapsset Corridor Development Authority), and first Nairobi Governor Evans Kidero (Kenya National Trading Corporation).

Murang’a Governor Irungu Kang’ata welcomed the move, saying some of the entities have been bleeding the country’s resources with no significant returns.

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