The Cabinet has approved the dissolution of nine state corporations whose mandates can be effectively carried out by their parent ministries.
This decision followed an assessment conducted by the National Treasury on 271 state corporations, excluding those marked for privatisation.
The nine corporations proposed for dissolution include:
- Kenya Tsetse Fly and Trypanosomiasis Eradication Council
- Kenya Fish Marketing Authority
- Centre for Mathematics, Science and Technology Education in Africa
- President’s Award – Kenya
- Nuclear Power and Energy Agency
- Kenya National Commission for UNESCO
- Kenya Film Classification Board
- National Council for Nomadic Education
- LAPSSET Corridor Development Authority
The resolution was made during the first Cabinet meeting of 2025, held at State Lodge, Kakamega, and chaired by President William Ruto.
The Cabinet noted that many state corporations have been unable to meet their statutory and contractual obligations, resulting in accumulated pending bills amounting to Ksh 94.4 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,” read part of a dispatch from the Cabinet.
The proposed reforms aim to address operational and financial inefficiencies, enhance service delivery, and reduce reliance on public funds.
Key Changes Proposed
The Cabinet resolved that the functions of the nine corporations will be transferred back to the respective ministries or other relevant state agencies.
Additionally, the Cabinet approved the following measures to streamline state corporations:
- Merger of 42 Corporations: Entities with overlapping or related mandates will be merged into 20 corporations to improve efficiency and eliminate redundancy.
- Divestment or Dissolution: Sixteen corporations with outdated functions that can be handled by the private sector will either be dissolved or divested.
- Restructuring: Six state corporations will undergo restructuring to better align their mandates and enhance performance.
- Declassification of Public Funds: Four public funds currently classified as state corporations will be returned to their respective ministries under a strengthened governance framework. These funds include:
- Water Sector Trust Fund
- National Environment Trust Fund
- Sports, Arts and Social Development Fund
- Fish Levy Trust Fund
The proposed changes are part of a broader effort by the government to reduce waste, improve efficiency, and enhance accountability in public service delivery.
