By John Kariuki
In a landmark meeting at the Kakamega State Lodge, President William Ruto chaired discussions that set the stage for a significant restructuring of Kenya’s state corporations. The reforms, targeting 271 parastatals assessed by the National Treasury, will see some merged, others dissolved, and a number declassified and returned to their respective ministries. These measures aim to address operational and financial inefficiencies, enhance service delivery, and reduce dependency on the Exchequer.
The Cabinet revealed that 42 state corporations will be merged to eliminate redundancies and streamline operations. Among the affected entities is the Engineers Board of Kenya, which will no longer receive budgetary allocations from the Exchequer. The decision aligns with the recommendations of the 2014 Taskforce on the Reform of Parastatals, which emphasized that professional organizations should become self-reliant rather than depending on government funding.
The reforms also draw from the 2021 Taskforce on the Review of Power Purchase Agreements, which called for significant changes within the energy sector. One of its key recommendations was to reabsorb the Nuclear Power and Energy Agency (NUPEA) back into the Ministry of Energy as a department. This strategic shift aims to enhance efficiency, reduce costs, and align energy policies with broader national objectives.
Renowned leaders of professional firms have applauded the government’s bold reforms, describing them as necessary and backed by extensive empirical evidence. “Professional bodies have the capacity for self-sustenance,” one leader observed, highlighting studies that underscore their ability to generate their own revenue and operate independently of state funding.
Engineering firms and other stakeholders have similarly welcomed the move, describing it as the culmination of years of deliberations and efforts to ensure more efficient public resource management. “The President’s decision to embrace these austerity measures reflects a clear commitment to sustainable governance,” they noted.
These reforms, which also take into account a 2014 report recommending a leaner and more efficient public service structure, mark a turning point in Kenya’s governance. By restructuring state corporations, the government aims to create a more effective public sector while freeing resources for critical national priorities.
As Kenya embarks on this transformative journey, the restructuring promises not only better value for taxpayers but also an empowered and self-sustaining professional sector, poised to drive the country’s development agenda forward.
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