At least 16 State Corporations are set to be dissolved alongside their functions.
A further 42 others will be merged into 20 while 9 others will also be dissolved and their functions transfered to relevant ministries and State agencies.
The move aimed at streamlining government operations, cut costs and reduce waste was given a green light by the Cabinet on Tuesday, January 21, 2025.
Which State Corporations will be dissolved?
According to a despatch seen by Uasin Gishu News, among the State Corporations that have been earmarked for dissolution is Kerio Valley Development Authority (KVDA) and Kenya Post Office Savings Bank.
Cabinet said the Corporations have outdated mandates.
Others are Lake Basin Development Authority, Jomo Kenyatta Foundation and Scrap Metal Council.
9 State Corporations that Cabinet believes their functions can be handled by the Ministry hence should also be dissolved include Kenya Film Classification Board, Nuclear Power and Energy Agency as well as Kenya National Commission for UNESCO.
“Many State Corporations have struggled to meet their contractual and statutory obligations, leading to an accumulation of pending bills amounting to KSh94.4 billion as of March 31, 2024,” a cabinet despatch noted.
List of State Corporations to be merged
Some of the State Corporations proposed to be merged into one include University Fund and the Higher Education Loans Board (HELB), Tourism Board and Tourism Research Institute, Anti-Counterfeit Authority, Kenya Industrial Property Institute and Kenya Copyright Board as well as Agriculture Finance Corporation and Comodities Fund.
The Cabinet also approved merger of Kenya Forest Service and Kenya Water Tower Agency into one.
Agricultural Development Corporation and Kenya Animal Genetic Centre will merged into one entity same as Kenya Rural Roads Authority and Kenya Urban Roads Authority.
Commission for University Education (CUE), Technical and Vocational Education Authority (TVETA) and Kenya National Qualifications Authority (KQA) have also been proposed to merge into a single State Corporation.
In addition, six State Corporations will undergo restructuring to better align their
returned to the relevant ministries with a strengthened governance framework.
“These reforms have been necessitated by increasing fiscal pressures arising from constrained government resources, the demand for high quality public services, and the growing public debt burden,” noted the Cabinet despatch.
