The government has announced plans to dissolve nine state corporations and merge 42 into 20 as part of austerity measures.

The move was arrived at following a cabinet meeting at the Kakamega State Lodge on Tuesday, January 21, 2025.

In a statement after the meeting, State House announced that the National Treasury assessed 271 state corporations, excluding those earmarked for privatization.

“Nine State Corporations will be dissolved, with their functions transferred to relevant ministries or other State entities, while 16 corporations with outdated functions that can be provided by the private sector will be divested or dissolved,” the statement read in part.

“Six State Corporations will undergo restructuring to better align their mandates and enhance 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 also resolved that all professional organisations currently categorized as state corporations will also be declassified and will no longer receive government budgetary allocations.

“These reforms have been necessitated by increasing fiscal pressures arising from constrained government resources, the demand for high- quality public services, and the growing public debt burden,” the statement added.

Many state corporations have struggled to meet their contractual and statutory obligations, leading to an accumulation of pending bills amounting to Ksh94.4 billion as of March 31, 2024.

Here’s a list of state corporations that will be affected by the changes;

42 state corporations that will be merged

	State Corporation
1	University Fund
	Higher Education Loans Board
2	Kenya Tourism Board
	Tourism Research Institute
3	Export Processing Zones Authority
	Special Economic Zones Authority
4	Anti-Counterfeit Authority
	Kenya Industrial Property Institute
	Kenya Copyright Board
5	Kenya Industrial Research and Development Institute
	Kenya Industrial Estates
6	Agricultural Finance Corporation
	Commodities Fund
7	Kenya Forest Service
	Kenya Water Towers Agency
8	Agricultural Development Corporation

	Kenya Animal Genetic Resource Centre
9	National Irrigation Authority
	National Water Harvesting and Storage Authority
10	Kenya Law Reform Commission
	National Council for Law Reporting
11	Tourism Promotion Fund
	Tourism Fund
12	Commission for University Education
	Technical and Vocational Education and Training Authority
	Kenya National Qualifications Authority
13	Kenya Rural Roads Authority
	Kenya Urban Roads Authority
14	Kenya Investment Authority
	Kenya Export Promotion and Branding Agency
15	Water Services Regulatory Board
	Water Regulatory Authority
	Regional Center on Ground Water Resources, Education, Training and Research
16	Kenya National Trading Corporation
	National Cereals & Produce Board
17	Uwezo Fund

	Women Enterprise Fund
	Youth Enterprise Development Fund
18	Kenya Medical Research Institute
	Kenya Institute of Primate Research
19	Kenya Plant Health Inspectorate Service
	National Bio-Safety Authority
20	Agriculture and Food Authority

9 state corporations proposed for dissolution

S/No.	State Corporation
1	Kenya Tsetse Fly and Trypanosomiasis Eradication Council
2	Kenya Fish Marketing Authority
3	Centre for Mathematics, Science and Technology Education in Africa
4	President’s Award – Kenya
5	Nuclear Power and Energy Agency
6	Kenya National Commission for UNESCO
7	Kenya Film Classification Board

8	National Council for Nomadic Education
9	LAPSSET Corridor Development Authority

16 state corporations proposed for divesture/dissolution

S/No.	State Corporation
1	Numerical Machining Complex
2	Scrap Metal Council
3	Kenya Fishing Industries Corporation
4	Jomo Kenyatta Foundation
5	Pyrethrum Processing Company of Kenya Ltd
6	Kenya National Shipping Line
7	School Equipment Production Unit
8	Kenya Yearbook Editorial Board
9	Kenya National Assurance Company
10	Coast Development Authority
11	Ewaso Ng’iro South Development Authority
12	Ewaso Ng’iro North Development Authority
13	Kerio Valley Development Authority
14	Lake Basin Development Authority
15	Tana and Athi Rivers Development Authority

16	Kenya Post Office Savings Bank

6 state corporations proposed for restructuring

	State Corporation
1	Kenya Utalii College
2	Postal Corporation of Kenya
3	Bomas of Kenya
4	National Syndemic Diseases Control Council
5	Kenya Roads Board
6	National Housing Corporation

4 public funds categorized as state corporations to be declassified and reverted back to the ministry

	State Corporation
1	Water Sector Trust Fund
2	National Environment Trust Fund
3	Sports, Arts and Social Development Fund
4	Fish Levy Trust Fund

Professional bodies and welfare society that will not be financed by govt

	State Corporation
1	Hydrologists Registration Board
2	Clinical Officers Authority
3	Council of the Institute of Nutritionists and Dieticians
4	Kenya Health Professionals Oversight Authority
5	Kenya Medical Laboratory Technicians and Technologists Board
6	Kenya Medical Practitioners and Dentists Council
7	Public Health Officers and Technicians Council
8	Nursing Council of Kenya
9	Engineers Board of Kenya
10	Institute of Certified Investment and Financial Analysts
11	Institute of Human Resource Management
12	Kenya Institute of Supplies Management
13	Child Welfare Society of Kenya