IGRTC says more state agencies with duplicating functions to be dissolved

The Inter-Governmental Relations Technical Committee (IGRTC) has revealed that more State agencies with duplicating functions that are devolved are on the verge of being dissolved or merged with the relevant institutions.

This comes barely three months after President William Ruto announced that 42 state agencies will be dissolved to do away with inefficiencies, improving service delivery and easing the financial burden on the national government.

 IGRTC Chief Executive Officer Kipkirui Chepkwony said that the move aims to ensure that the remaining devolved functions are transferred to the counties.

“The Cabinet decision that led to the merger and dissolution of the state agencies early this year was backed up by the gazette notice published on December 16, 2024 that directed that the remaining functions that were devolved should be transferred to the counties,” said Chepkwony.

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Speaking during a sensitisation exercise with stakeholders drawn from the national and county government among other concerned parties, Chepkwony said that the main strategy is to ensure that the roles played by the said agencies are not only transferred to the counties but the funds required to run the operations in the counties are also disbursed.

IGRTC Chairman Kithinji Kiragu revealed that the committee has also identified key pieces of legislation that they will be requesting Parliament to repeal or amend to ensure the transfer of all devolved functions to the counties.

Kiragu said that the National Treasury has already conducted an assessment of 271 State corporations, excluding those earmarked for privatisation, identifying areas of inefficiency and redundancy with resulting pending bills amounting to Sh 94.4 billion by March 2024.

“The report by the National Treasury revealed that many state corporations have struggled to meet their statutory obligations, resulting in pending bills amounting to 94.4 billion shillings as of March 31, 2024,” he said.

The government has assured Kenyans that no jobs will be lost following the Cabinet’s decision to merge 42 state corporations into 20 entities as part of fiscal consolidation plan.

Kiragu said the committee will conclude the exercise by March 2025 to ensure the funds are disbursed in the financial year 25/26 to facilitate smooth operations in the devolved units as they take over the new units.

President Ruto said in December 2024 that the government has finalised the unbundling, delineation, and transfer of all devolved functions to counties in line with the directive he issued during the 2023 National and County Governments Coordination Summit.

Ruto who was speaking during 11th National and County Governments summit at State House Nairobi directed the IGRTC to take the next step of systematically identifying and transferring the requisite budgetary and other resources tied to these functions in the next fiscal year.

Counties governments have over the years raised concern over the decision by the national government to hold onto crucial functions like Health, Agriculture and Rural Roads Development with a budget worth billions of shillings.

“The harmonious intergovernmental relations, as outlined in Article 6 of the Constitution, are essential for effective and sustainable devolution and, by extension, the success of our national socioeconomic transformation agenda pointing out while the two levels of government are distinct, they are also interdependent,” said Ruto.

Council of Governors Chairperson Ahmed Abdullahi told the summit that gazettment of unbundled functions and transfer of remaining county functions and attendant resources, finalisation of longstanding valuation of assets of defunct local authorities and devolved functions is very crucial for the smooth operation of the 47 counties.