President William Ruto on Tuesday, January 21, chaired the first Cabinet meeting of 2025 at the State Lodge in Kakamega.
During the meeting, the National Treasury assessed 271 State Corporations set to undergo a series of reforms including dissolution.
One of the key reforms includes the merger of 42 State Corporations with overlapping or related mandates into 20 entities.
Among the notable mergers, the University Fund and Higher Education Loans Board will now operate as a single entity.
Similarly, the Kenya Tourism Board and Tourism Research Institute will combine to enhance the tourism sector.
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Agencies like the Kenya Industrial Research and Development Institute and Kenya Industrial Estates will also be unified to better support industrial development.
Additionally, nine State Corporations, whose functions can be executed within existing ministries or other entities, have been marked for dissolution.
These include the Kenya Tsetse Fly and Trypanosomiasis Eradication Council, the Nuclear Power and Energy Agency, and the Kenya Film Classification Board among others.
Their mandates will revert to relevant ministries to avoid duplication.
In recognition of outdated mandates, 16 State Corporations will either be divested or dissolved.
The reforms acknowledge that private sector players are better positioned to deliver certain services.
As such, institutions like the Scrap Metal Council, Kenya National Shipping Line, and Jomo Kenyatta Foundation are among those listed for divestiture.
On the other hand, six State Corporations, namely Kenya Utalii College, Postal Corporation of Kenya, Bomas of Kenya, National Syndemic Diseases Control Council, Kenya Roads Board, and National Housing Corporation, will undergo significant restructuring.
Four public funds, currently categorized as State Corporations, will be declassified and their oversight returned to the relevant ministries.
These include the Water Sector Trust Fund, the National Environment Trust Fund, Sports, Arts, and Social Development Fund, and the Fish Levy Trust Fund.
Further, 13 professional bodies currently categorized as state corporations will be declassified and not be financed through budgetary allocations.
The bodies include the Hydrologists Registration Board, the Clinical Officers Authority, the Nursing Council of Kenya and the Engineers Board of Kenya.
Attached below is the full list;
