The government anticipates saving up to Sh60 billion annually through the state corporations’ reforms announced on Tuesday, according to the Treasury.
These savings will mainly come from reducing operational costs and cutting back on subsidies often provided to support unprofitable entities. National Treasury CS John Mbadi highlighted that the streamlining efforts will significantly reduce taxpayer burdens currently funneled into non-performing institutions, with preliminary estimates suggesting Sh60 billion in annual savings.
Mbadi assured that no employees would lose their jobs during the process, as they would be redeployed to areas of critical need within the public service. The reforms will involve merging 42 corporations with overlapping mandates into 20, dissolving 25 entities, and restructuring six others.
The move, described as long overdue, has received widespread support, including from Deputy President Kithure Kindiki and Murang’a Governor Irungu Kang’ata, who emphasized the need to curb wastage and redirect funds to priority sectors like education and healthcare.
