Govt to dissolve 9 state corporations and merge 42 into 20
By Francis Muli, January 21, 2025
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dissolved, with their functions transferred to relevant ministries or other State entities, while 16 corporations with outdated functions that can be provided by the private sector will be divested or dissolved,” the statement read in part.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 |