MP Elachi calls for more time before dissolution of state corporations
By Arnold Ngure, January 22, 2025Dagoretti North Member of Parliament Beatrice Elachi has urged the government to slow down the merger and dissolution of state corporations noting that the decision could have far-reaching consequences.
Speaking during a local TV morning show on Wednesday, January 22, 2025, Elachi observed that the cabinet resolution to align several parastatals and state corporations must take into account that human beings are involved.
“It is important to appreciate that we are dealing with humans; Kenyans who have gone through a tough time of post-COVID crisis,” Elachi said.
“I am hoping that each parastatal will be given time for processes to be done properly as they move to merge.”
Start with retirees
Elachi equally stated that when it comes to laying off staff from redundant state corporations, the state should consider starting with employees approaching retirement.
“Start with those who are about to retire,” Elachi noted.
However, his Mbeere North counterpart Geoffrey Ruku said that nobody would lose their jobs in the realignment coming from the cabinet decision on Tuesday, January 21, 2025.
“There is nobody who would be sacked or sent home due to the realignment of parastatals. All those who will be realigned will go to the main ministry and continue with their service,” Ruku said.
“This is a process that started about 10 years ago and we cannot continue pussyfooting about some of these very important decisions which need to be taken by bold leaders.”
Naivasha MP Jayne Kihara equally observed that the decision to realign state corporations should be presented to the National Assembly for purposes of oversight and clarification on thorny issues.
“It is a proposal by the cabinet and I really hope that it will come to parliament because some of us would want to ask some questions,” Kihara said.
State House response
In a statement on Wednesday, January 22, 2025, State House spokesperson Hussein Mohamed also noted that there would be no loss of jobs in the realignment of state corporations.
“No State Corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the Public Service. This is line with the commitment to streamline government operations, reduce waste, and curb excesses. The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the exchequer,” he affirmed.