Business

Treasury: State to merge 35 parastatals

Thursday, May 16th, 2024 04:45 | By
Postal Corporation of Kenya (PCK) Headquarters in Nairobi
Postal Corporation of Kenya (PCK) Headquarters in Nairobi. PHOTO/Print

The government will merge at least 35 State corporations to remove duplications, enhance synergy and effectiveness and ensure efficient use of public resources.

The National Treasury and Economic Council has recommended the merger of at least 35 institutions, among them the Kenya National Qualifications Authority (KNQA) which is expected to be merged with the Commission for University Education to establish one regulator to ensure quality of education and qualifications.

The National Treasury and Economic Council (NTEC) has organised consultative meetings with various Chief Executive Officers (CEOs) and management of the various corporations to come up with ways of executing the merger.

Core functions

The CEOs were expected to state how relevant their organisations are in today’s economic environment, whether any of their core functions are similar to or being undertaken by other agencies, their future plans and the challenges in implementing their mandates.

They are also expected to provide outstanding statutory obligation by the category, provide status of all borrowings, and also provide a list of ongoing projects, stalled projects, and titles of ownership.

Some of the recommendations include restructuring Postal Corporation of Kenya (PCK) to take over Kenya National Shipping Line. As a result, the government is expected to partner with the private sector to establish a logistics company to undertake the business of cargo shipment, clearing and forwarding and last mile destination.

Also to be merged are Export Processing Zones Authority (EPZA) and Special Economic Zones Authority (SEZA) to establish one entity to create an enabling environment for both local and global investors through promotion of processing and special zones.

Academy of Sports

Others are Kenya Academy of Sports (KAS) currently headed by Dr Doreen Anyango Odhiambo and Sports Kenya (SK) to establish one entity for the development and promotion of sports; Uwezo Fund, Youth Enterprise Development Fund and Women Enterprise Fund to establish one well-resourced Fund to affordable credit to targeted MSME groups such as Youth, Women and PWDs (Affirmative Action); and Kenya Industrial Property Institute (KIPI) and Kenya Copyrights Board to establish an entity to register and patent intellectual and industrial property and copyrights to enhance synergy.

It has also been recommended that a well-resourced entity be established to promote and market Kenya as an investment and or tourism destination including Kenya’s products for exports to replace the Kenya Export Promotion and Branding Agency (KEPBA), Kenya Investment Authority (KIA), Kenya Tourism Board, Tourism Research Institute (TRI) and the Kenya Yearbook Editorial Board (KYBEB).

Others are Agricultural Finance Corporation (AFC) and the Commodities Fund (CF) to establish one well-resourced Fund to enhance access to affordable credit to farmers to enhance food production and food security; and the merger of Kenya Law Reform Commission (KLRC) and National Council for Law Reporting (NCLR) to establish one entity to coordinate matters relating to Law such as reviews and reforms and publication of Kenya Law Reports.

The Kenya Cultural Centre and Bomas of Kenya under the Department of Culture and Arts are now proposed to be merged into one autonomy in a bid to solely promote Kenya’s heritage and cultural diversity.

At the same time, the National Heroes Council and President’s Award-Kenya State Corporations will be jointly involved in identifying distinguished persons who have made a significant contribution for honoring awards. The facilitation will be spearheaded by the two Principal Secretaries of Youth Affairs and State Department for Culture and Heritage.

In the case of Kenya Water Institute and Regional Center on Ground Water Resources, Education and Training and Research will be jointly responsible for conducting training and research on water resources management. This initiative will be led by the PS in charge of State Department of Irrigation.

Additionally, there is also a proposal by the NTEC to consider restructuring the Kenya Forestry Service (KFS) to take over the mandate of Kenya Water Tower Agency (KWTA). This will be spearheaded by the State Department of Forestry in collaboration with the respective Director-Generals of the said corporations.

At the same time, another proposal listed for pursuit is the considered merger for National Cancer Institute of Kenya (NCIK) AND National Syndemic Disease Control Council. The plan will be to establish an entity to coordinate and manage Chronic and Syndemic Diseases.

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