State House Spokesperson Hussein Mohamed
State House has moved to reassure Kenyans that no jobs will be lost following the government’s decision to merge 42 state corporations into 20.
Speaking on Wednesday, January 22, State House Spokesperson Hussein Mohamed sought to calm growing fears, stating that all affected employees will be absorbed into the Public Service.
"No State Corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the Public Service," Mohamed said in a statement. "This is in line with the government's commitment to streamline operations and reduce waste."
The clarification comes after the Cabinet, chaired by President William Ruto, approved the merger on Tuesday, January 21, during its first meeting of the year at the Kakamega State Lodge.
The government also announced the dissolution of nine state agencies as part of cost-cutting measures.
The announcement made civil servants apprehensive as many began to fear for their future. Reports had been doing rounds that this could leave thousands jobless.
Mohamed has however reassured them that this step will help in bringing efficiency and better service delivery.
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| President William Ruto and his Cabinet during a meeting in Kakamega |
"These reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the exchequer," he added.
The decision to merge state corporations came after an in-depth review by the Ministry of Treasury, which reviewed 271 government entities.
The review indicated overlapping roles and inefficiencies that led to the consolidation plan. Notably, agencies slated for privatization will not be affected by the restructuring.
Some of the mergers involve the Higher Education Loans Board, which, in collaboration with the University Fund, will offer its services in one body that would help benefit students.
There will also be the combination of the Kenya Tourism Board and the Tourism Research Institute, to coherently spearhead tourism in Kenya.
Meanwhile, some institutions will be dissolved altogether, including the President’s Award, the Kenya Nuclear Power and Energy Agency, the Kenya National Commission for UNESCO, and the Kenya Film Classification Board.
Despite initial concerns, the government insists that these changes will lead to a leaner, more efficient public sector while safeguarding jobs.
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