On Tuesday, January 21, President William Ruto chaired the first Cabinet meeting of 2025 at the State Lodge in Kakamega. During the meeting, the National Treasury presented a detailed assessment of 271 State Corporations, many of which are set to undergo significant reforms, including mergers, restructuring, and dissolution.
One of the key reforms involves merging 42 State Corporations with overlapping mandates into 20 streamlined entities. Notable examples include the integration of the University Fund and the Higher Education Loans Board to improve funding efficiency in higher education. Similarly, the Kenya Tourism Board will merge with the Tourism Research Institute to enhance the tourism sector. Additionally, industrial development agencies such as the Kenya Industrial Research and Development Institute and Kenya Industrial Estates will be unified to better support industrial growth.
Nine State Corporations, identified as redundant, are set for dissolution. Their functions will be absorbed by existing ministries or entities to prevent duplication. Among those marked for dissolution are the Kenya Tsetse Fly and Trypanosomiasis Eradication Council, the Nuclear Power and Energy Agency, and the Kenya Film Classification Board.
In recognizing that the private sector is better equipped to deliver certain services, the government will divest from 16 State Corporations with outdated mandates. These include the Scrap Metal Council, Kenya National Shipping Line, and Jomo Kenyatta Foundation, which are slated for privatization.
Six strategic corporations, including Kenya Utalii College, Postal Corporation of Kenya, Bomas of Kenya, National Syndemic Diseases Control Council, Kenya Roads Board, and National Housing Corporation, will undergo significant restructuring to enhance their efficiency and effectiveness.
Four public funds previously categorized as State Corporations will be declassified and placed under the direct oversight of relevant ministries. These include the Water Sector Trust Fund, National Environment Trust Fund, Sports, Arts, and Social Development Fund, and Fish Levy Trust Fund.
Additionally, 13 professional bodies currently classified as State Corporations will no longer receive budgetary allocations. These include the Hydrologists Registration Board, Clinical Officers Authority, Nursing Council of Kenya, and Engineers Board of Kenya, among others.
The reforms aim to eliminate redundancies, streamline operations, and realign resources to national development goals. By merging, restructuring, and privatizing selected entities, the government seeks to enhance efficiency and foster collaboration between the public and private sectors for Kenya’s economic growth.
