38 agencies merged in State
Chief of Staff and Head of the Public Service Joseph Kinyua. Mr Kinyua said granting the company exclusive rights to supply the products to the government would lead to “cost-savings, access to guaranteed clean fuel and fraud prevention through use of fuel cards.” FILE
What you need to know:
- Head of Public Service Joseph Kinyua, who is leading the implementation of reforms in parastatals, lauded the progress made since the team consolidating the entities finished its work several months ago.
Thirty eight parastatals have been merged as the government steps up efforts to reduce its wage bill.
The 38 have now been consolidated to 14 new agencies, a statement from State House said Thursday.
Consequently, the total number of State Corporations have been reduced from 262 to 187.
The new revitalised corporations are expected to focus on making profit to boost government revenue.
It was unclear which parastatals have been merged or those scrapped following the implementation of a report by taskforce on parastatal reforms.
Thursday, President Kenyatta said that parastatals should be able to perform their duties just like private companies once the reforms are complete.
Speaking during a session on parastatal reforms, President Kenyatta said there is no reason why the public should continue pumping funds into institutions which are not profitable.
The aim of reforming parastatals is to ensure incentives are aligned to the performance of those working in public organisations, he added.
Head of Public Service Joseph Kinyua, who is leading the implementation of reforms in parastatals, lauded the progress made since the team consolidating the entities finished its work several months ago.
“Two Bills, the Government Owned Entities Bill 2014 and the National Sovereign Wealth Fund Bill, 2014 have been submitted to the Commission on Implementation of the Constitution,” said Mr Kinyua.
If the Bills are passed, parastatals will be referred to as State Owned Entities.
Mr Kinyua said that a draft code of governance has been developed to manage the sector and guide parastatal executives.
