Prime Cabinet Secretary Musalia Mudavadi, on Wednesday, April 12, issued a stern warning to failing parastatals that they risk being merged into other state corporations.
While addressing state corporations during the induction of board members in Naivasha, Musalia hinted that some civil servants would be laid off to avert duplication of roles.
“At the Induction of Board Members of State Corporations in Naivasha, I challenged them that their appointment does not give them a latitude to play politics or siphon from state corporations, and the board is not a retirement home.
“They have an urgent duty to turn things into profitability, or otherwise, the hammer of privatization will be knocking at their doors. There will be no room for laxity, and the era of “Waziri amesema” (The minister has said) is over,” noted Mudavadi.
In a statement, he urged board members to adopt the Kenya Kwanza regime’s culture emphasising the pursuit of excellence.
He also pointed out the economic plan of the government, commonly referred to as the Bottom-Up Transformation Agenda (BeTA), which is the guiding economic principle of the government.
President William Ruto had made several board appointments since coming to office in September 2022.
Among the top appointments included that of Caleb Kositany, who was made the Kenya Airports Authority board chairperson on March 17.
On April 8, David Ndii, the chair of President Ruto’s Council of Economic Advisors, also warned that the government would opt for retrenchment to reduce expenditures.
Ndii admitted that the government was facing a cash crunch that saw civil servant miss their March 2023 salaries.
Azimio La Umoja coalition members, nonetheless, vowed to resist any plan to lay off civil servants.
Led by Ugunja Member of Parliament and minority leader, Opiyo Wandayi, the opposition announced that it would curtail any plan to retrench workers.
“No civil servant is going to be retrenched while [President] Ruto is busy hiring CASs [chief administrative secretaries] and other personnel the country doesn’t need. Not under our watch,” noted Wandayi.
