State stops hiring, promotions in 42 parastatals set for merger

The government has suspended the hiring of new employees and promotions in all the 42 State corporations targeted for mergers or dissolution.
Any approved new organisational structure and new terms and conditions of service for staff have also been put on hold.
In a circular seen by People Daily, the government has also stopped the implementation of new projects, regardless of whether all the necessary approvals and budgetary resources have been provided.
“Suspend any new recruitment, any new appointments where interviews have been undertaken, confirmation of new appointments as well as any promotions,” National Treasury Principal Secretary Dr Chris Kiptoo says in a February 5 letter to his Agriculture counterpart Dr Paul K. Ronoh.
The Agricultural Finance Corporation, Commodities Fund and National Cereals and Produce Board have been directed to nominate senior officers to join government multi-agency technical committees implementing reforms in State parastatals.
The chief executives of the corporations were ordered to submit staff organisational structures and a list of assets, liabilities and obligations, as well as confirm that all existing contracts with the entity could be reassigned.
Kiptoo says the back-to-back meetings are scheduled to kick off today at the Kenya School of Government.
Last month, the Cabinet approved sweeping reforms that will see 42 State corporations considered to have related or overlapping functions merged into 20 agencies.
The measures, announced following a Cabinet meeting chaired by President William Ruto at the Kakamega State Lodge on Tuesday, will also see several government agencies dissolved and others restructured to reduce wastage of public resources.