23 May 2014

Kenya Merges 38 Parastatal Agencies to Reduce Wage Bill

Photo: http://www.trust.org
Kenya reduces the number of parastatal agencies to cut on the wage bill (file photo).

The Kenyan government has merged 38 parastatal agencies and consolidated them into 14 new agencies in an effort to reduce its wage bill, Kenya's Daily Nation reported Thursday (May 22nd).

A statement from Kenyan President Uhuru Kenyatta's office said the total number of government-owned corporations has now been reduced from 262 to 187, with these newly revised corporations expected to focus on profit-making in an attempt to increase government revenue.

Speaking in a parliamentary session on Thursday, Kenyatta said the parastatals would be as competitive and business-oriented as private sector companies once the reforms are completed, since the public should not have to continue to fund unprofitable institutions.

Head of Public Service Joseph Kinyua, who is leading implementation of the reforms, added that a draft code of governance has been developed to manage the sector.

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