Kenyans working for the Kenya Industrial Estates, Uwezo Fund, Youth Enterprise Development Fund, Women Enterprise Development Fund, Development Bank of Kenya and IDB Capital Limited may soon face job losses.
This is after the Government kicked off the process of consolidating the six financial institutions into one mega development bank to eliminate overlapping roles.
“All the staff serving in State agencies being merged shall be presumed to be staff of the new government-owned entity,” a transitional inter-agency taskforce which was formed to shake-up the parastatals, advised in its report.
[caption caption="President Uhuru Kenyatta During Launch of Uwezo Fund"]
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“Any staff found not fitting in the establishment structure may be redeployed elsewhere in the public service or be off-loaded in the normal manner,” it added.
The impending consolidation is in line with recommendations of a 2013 report by a parastatal reforms taskforce appointed by President Uhuru Kenyatta.
Head of Public Service, Joseph Kinyua, has also issued a notice to the affected agencies to convey orders for the interim period.
"Any filling of vacancies in the Boards as well as of CEOs across all identified State Corporations/Funds should only be done after necessary consultations with the Head of Public Service to ensure consistency with recommended reforms," Mr Kinyua's circular stated in part.
The Government, however, directed that members of staff in the institutions should be retained pending further instructions.
Mr Kinyua emphasised that the greatest beneficiaries of the merger are small and medium scale enterprises and the youth as leaks in current programmes will be tightened.
"This move is in line with the parastatal reforms that were recommended by the President’s taskforce on parastatal reforms in 2013," he added.
[caption caption="President Uhuru Kenyatta and Head of Public Service, Joseph Kinyua"]
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