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All employees impacted by the dissolution and declassification of parastatals will be absorbed into the public service, State House Spokesperson Hussein Mohamed now says.
In a statement on Wedneday, January 22, Mohamed assured that the restructuring would not result in the loss of any essential State Corporation functions.
The announcement comes a day after the Cabinet approved a major restructuring plan that merges 42 parastatals into 20 entities, with nine others being dissolved.
“This restructuring is part of the government's commitment to streamline operations, reduce waste, and eliminate inefficiencies. The reforms are designed to improve service delivery, cut operational costs, and lessen reliance on public funds,” said Mohamed.
As part of the reforms, 16 corporations whose functions can overlap with the private sector will be dissolved.
Additionally, six parastatals will undergo restructuring, and 13 professional bodies that currently receive government funding, such as the Engineers Board, the Kenya Medical Practitioners and Dentists Council (KMPDC), and the Nursing Council, will be declassified and will no longer receive budgetary allocations under the new framework.
This move, Cabinet said, is in response to the growing fiscal challenges, including rising public debt and increasing demands for government services, and is meant to reduce government excesses.
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