Treasury Cabinet Secretary John Mbadi has assured Kenyans that no jobs will be lost following the government's decision to merge and dissolve several state corporations.
Mbadi, who spoke during a Youth Parliament Town Hall in Nairobi on Friday, May 16, said no jobs would be lost as the government would reassign affected employees to other state entities.
The Treasury CS made it clear that the mergers, the dissolutions, and the reassignments would commence from the next financial year, 2025/2026, which kicks off on July 1 this year.
"I do not see job losses because even state-owned enterprises reforms that we are bringing, these parastatals will either be merging, dissolving, or reassigning their functions to other government ministries," Mbadi stated.
He went on to add: "The staff working in the parastatals will then be absorbed elsewhere in government, because even now people are recruiting, so instead of recruiting, we will be reassigning them.”
However, Mbadi reiterated that should there be any job losses as a result of the reforms, then the government would be liable and necessary steps would be taken to compensate those affected.
"Even if some people have to go home, they should be going home in a more structured manner and may be paid through an agreement, but we are not anticipating any job losses in 2025," he explained.
President William Ruto's cabinet, earlier this year, announced sweeping reforms aimed at eliminating inefficiencies and improving government operations through the merging of 47 state corporations.
In the cabinet meeting held on January 21, members of the cabinet also approved the dissolution of nine corporations and the divestiture of 16 other parastatals.
"In line with the commitment to streamline government operations, reduce waste, and curb excesses, the Cabinet approved a series of recommendations aimed at reforming state corporations," read part of the Cabinet dispatch.
"These reforms have been necessitated by increasing fiscal pressures arising from constrained government resources, the demand for high-quality public services, and the growing public debt burden," the dispatch further read.
Among the state corporations listed for merging were the Universities Fund, which would be merged with the Higher Education Loans Board (HELB); Kenya Industrial Estates, which would be merged with the Kenya Industrial Research and Development Institute; and the Kenya Water Towers Agency, which would merge with the Kenya Forest Service.
Others include the Kenya Animal Genetic Resources Centre, set to merge with the Agricultural Development Corporation, and the Kenya Rural Roads Authority, which would merge with the Kenya Urban Roads Authority.
Additionally, the Technical and Vocational Education and Training Authority would be merged with the Commission for University Education, while the Kenya Medical Research Institute would merge with the Kenya Institute of Primate Research.
