State House addresses job loss concerns after dissolving and merging state corporations
State House Spokesperson Hussein Mohamed has affirmed that no jobs will be lost following the government's decision to dissolve nine state corporations and merge 42 others
State House Spokesperson Hussein Mohamed has affirmed that no jobs will be lost following the government’s decision to dissolve nine state corporations and merge 42 others.
In a statement on Wednesday, January 22, Mohamed explained that all affected employees will be absorbed into the public service.
He further clarified that no functions of the state corporations will be lost, noting that the move aligns with the government’s commitment to minimizing wastage.
“No state corporation function will be lost, and no jobs will be lost as all affected employees will be absorbed into the public service.
“This is in line with the commitment to streamline government operations, reduce waste, and curb excesses. The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the exchequer,” Mohamed remarked.
His remarks come after the cabinet on Tuesday, January 22, approved a proposal to merge 42 state corporations with overlapping or related mandates into 20 entities.
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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.
At the same time, the cabinet approved the dissolution of nine state corporations, which it said their functions would be executed within existing ministries.
These include the Kenya Tsetse Fly and Trypanosomiasis Eradication Council, the Nuclear Power and Energy Agency, the Kenya Film Classification Board, Kenya Fish Marketing Authority, Centre for Mathematics, Science and Technology Education in Africa, President’s Award – Kenya, Kenya National Commission for UNESCO, National Council for Nomadic Education and LAPSSET Corridor Development Authority.
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