- Deputy President (DP) Kithure Kindiki said some organizations have squandered public funds without providing commensurate value
- He emphasized that the government has no choice but to recommend the dissolution and sale of loss-making government agencies in order to reduce the use of public funds
- Cabinet noted that parent ministries would take over the functions of defunct public bodies, including the Kenya Fish Marketing Authority
Deputy President Kithur Kindiki he has supported the Cabinet's plan to liquidate, sell and merge outdated government agencies.
Source: UGC
What did Kindiki say about freezing some dollar instruments
In a statement on his Facebook page on Wednesday, January 22, the DP questioned how some organizations grabbed public money without providing the corresponding value.
Kindiki noted that some have responsibilities that overlap with national and devolved units, resulting in wastage of money.
“Of Kenya's 291 government agencies, some mimic the work of national government ministries and others interfere with the responsibilities assigned to counties. Some only pay salaries and maintain expensive boards of directors, adding little or no value to Kenya's development, ” he said.
The deputy president stressed that the government had no choice but to recommend the dissolution and sale of loss-making state-owned enterprises to reduce public spending.
“The administration of Kenya First you have decided to restrain yourself and implement the reforms of public organizations that have been discussed for more than 20 years now. This is one of the ways to reduce the size of the government and deal with the waste of public resources and corruption,” he added.
Which government agencies are slated to close?
On Tuesday, January 21, the Cabinet of the President William Ruto approved the dissolution of nine government agencies.
The Council of Ministers noted that the parent ministries would take over the responsibilities of the abolished public organizations.
It said that increasing budgetary challenges stemming from limited government resources, the need for high-quality public services, and increasing public debt burden forced the reform.
According to the government's main decision-making body, many government agencies have failed to fulfill their legal and contractual commitments.
The Kenya Tsetse Fly and Trypanosomiasis Eradication Council, the Kenya Fish Marketing Authority, and the Center for Mathematics, Science and Technology Education in Africa are among those facing disbandment.
Which government agencies will be sold?
The Cabinet also approved the sale of 16 government agencies, citing obsolete functions.
It noted that the affected organizations would be sold to private investors or liquidated entirely.
These include Numerical Machining Complex, Scrap Metal Council, Kenya Fishing Industries Corporation, Jomo Kenyatta Foundation, and Pyrethrum Processing Company of Kenya Ltd.
What to know about reforms in public organizations
The dismantling of state-owned enterprises is part of the reforms offered to Kenya by the International Monetary Fund (IMF), which advised the government to liquidate loss-making public enterprises.
The Bretton Woods Institution set conditions for Kenya to fulfill before applying for additional loans.
State House spokesman Hussein Mohamed assured the public that no jobs will be lost in the process, noting that all affected workers will be dealt with.
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