[LIST] 9 State Agencies Proposed For Dissolution

[LIST] 9 State Agencies Proposed For Dissolution

On Tuesday, the Cabinet approved a proposal to dissolve nine state organizations with duties that may be carried out by their parent ministries.

The decision came after the National Treasury evaluated 271 state enterprises, excluding those scheduled for privatisation.

The nine organizations include the Kenya Tsetse Fly and Trypanosomiasis Eradication Council, Kenya Fish Marketing Authority, Center for Mathematics, Science, and Technology Education in Africa, President’s Award – Kenya, and Nuclear Power and Energy Agency.

Others include the Kenya National Commission for UNESCO, the Kenya Film Classification Board, the National Council for Nomadic Education, and the LAPSSET Corridor Development Authority.

The decision was made at the first Cabinet meeting of 2025, which was held at the State Lodge in Kakamega and presided over by President William Ruto.

The Cabinet approved the merger of 42 State Corporations with overlapping mandates into 20 entities to improve efficiency.

Also:
—9 State Corporations will be dissolved, with their functions transferred to relevant ministries or other entities.
—16 State Corporations with… pic.twitter.com/PdQPGAvv1a

— Mwango Capital (@MwangoCapital) January 21, 2025

The Cabinet stated that many state firms have struggled to pay their contractual and statutory commitments, resulting in a buildup of outstanding invoices of 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 further stated that the reforms would address operational and financial inefficiencies, improve service delivery, and minimize dependency on public monies.

The meeting decided that the dissolution would occur after the nine entities’ activities were transferred back to ministries or other relevant state organizations.

The Cabinet also approved the consolidation of 42 State Corporations with overlapping or related mandates into 20 organizations to improve operational efficiency and minimize redundancy.

ALSO READ:

• “No Other ODM SG Surpasses Sifuna!” – Governor Orengo Declares
• Grisly Accident Claims 7 Lives Along Narok-Mai Mahiu Road
• Oparanya Blasts Linda Ground & Oburu Over Biased Leadership, Vows Walk Out
• Autopsy Reveals Cause Of Death Of Slain Nairobi Lawyer, Investigations Still Underway
• Suspended FKF President Hits Back At Federation, Rejects Suspension

Sixteen corporations with obsolete functions that might be performed by the private sector will also be sold or disbanded.

Furthermore, six state corporations will be restructured to better match requirements and improve 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 include the Water Sector Trust Fund, the National Environment Trust Fund, the Sports, Arts, and Social Development Fund, and the Fish Levy Trust Fund.

[LIST] 9 State Agencies Proposed For Dissolution