Major Reform: Nine State Corporations to Dissolve, 42 to Merge

The government has announced plans to dissolve nine state corporations and merge 42 others into seven umbrella entities. The move aims to streamline operations and reduce costs while maintaining public service delivery.

The Kenya Water Towers Agency, Bomas of Kenya, and Kenya Year Book are among the nine corporations slated for dissolution. Six water development agencies will also be consolidated under the Ministry of Water, signaling significant changes in the water sector's administration.

In the education sector, the Higher Education Loans Board (HELB) will merge with other lending institutions, including the Youth Enterprise Development Fund and Women Enterprise Fund. This consolidation is expected to create a more efficient lending system for students and entrepreneurs.

Addressing concerns about potential job losses, the government has assured public servants that no positions will be eliminated. "All affected employees will be redeployed to relevant ministries or merged entities," stated a government spokesperson. The implementation will proceed in phases, with immediate focus on the most pressing consolidations.

Alongside these structural changes, the Cabinet has approved a new Dual Training Policy for Technical and Vocational Education and Training (TVET) institutions. This policy aims to enhance technical training programs while institutions undergo restructuring.

The government is actively engaging with regional stakeholders through consultations to build support for these reforms. TVET institutions are already developing transition plans to ensure uninterrupted service delivery during the reorganization period.

These changes represent one of the most significant overhauls of Kenya's state corporations in recent years, reflecting the government's commitment to reducing bureaucracy and improving public sector efficiency.