Close Menu
News HubNews Hub
  • Home
  • General News
  • Breaking News
  • Trending
  • Business
  • Entertainment
  • Politics
  • Health
  • Celebrities
  • Economy
  • Sports
Trending Now

NIS Director Noordin Haji and Speaker Moses Wetangula Among 105 Lawyers Seeking Senior Counsel Title

October 9, 2025

KUCCPS Issues Directive to Universities and Colleges Ahead of KCSE Exams

October 9, 2025

Residents Flee, Businesses Closed as Boda Boda Riders Clash

October 9, 2025

Babu Owino’s Message to Gachagua and Opposition Leaders Ahead of 2027

October 9, 2025

Kenyatta University Hospital Clarifies Reports of Mass Recruitment at the Facility

October 9, 2025

Obinna Takes Action After Accusations of Causing Shalkido’s Death

October 9, 2025

Kenyans to Start Earning Money for Watching Social Media Ads – Itumbi

October 9, 2025

Court Frees Man Found Trespassing Parliament, Claims to Be President Ruto’s Son

October 9, 2025

Government Clarifies CBA Stalemate as Lecturers’ Strike Intensifies

October 8, 2025

Panic as 33-Seater Bus Plunges Into River Along Waiyaki Way at Waruku

October 7, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
News HubNews Hub
WhatsApp Facebook Advertise With Us
  • Home
  • General News
  • Breaking News
  • Trending
  • Business
  • Entertainment
  • Politics
  • Health
  • Celebrities
  • Economy
  • Sports
News HubNews Hub
Breaking News

Govt Threatens Possible Shutdowns of More State Agencies

Judith MwauraBy Judith MwauraFebruary 1, 2025No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

Government Warns of Possible Shutdowns for Underperforming State Agencies

The government has issued a stern warning that it will shut down all state agencies that fail to perform, putting thousands of jobs at risk.

This follows a Cabinet decision to either dissolve or merge certain parastatals in an effort to streamline operations and improve efficiency. At least 5,000 civil servants are expected to be affected by this move.

Speaking at the Kenya Pipeline Corporation (KPC) headquarters on Friday, Eliud Owalo, the Deputy Chief of Staff in charge of performance and delivery management at the Executive Office of the President, made it clear that the government is serious about holding public institutions accountable.

Owalo announced that moving forward, parastatal Chief Executive Officers (CEOs) and employees who demonstrate excellent performance will be rewarded with increased funding and other incentives. However, institutions that consistently underperform will face strict consequences, including being shut down.

“Every individual in the public sector will be held accountable. From now on, we will tie performance evaluations and performance contracts directly to rewards.

Institutions that exceed their set targets will receive additional financial support from the government to help them grow and deliver better services,” Owalo stated.

He further warned, “On the other hand, those institutions that consistently fail to meet expectations will face disciplinary actions, and their leadership will be held responsible. If an organization continuously fails to perform, then it should be allowed to collapse.”

Owalo made these remarks during the ongoing performance evaluation for Ministries, Departments, and Agencies (MDAs) for the 2023-2024 financial year, held at KPC.

His comments came at a time when KPC announced that it had remitted Ksh7 billion to the National Treasury for the financial year ending June 30, 2024. This marked a significant increase of Ksh2 billion from the previous year’s remittance.

KPC Managing Director Joe Sang revealed that the corporation had experienced a 20 per cent increase in profit before tax, rising from Ksh7.6 billion in the previous financial year to Ksh10.05 billion in the current review period.

“In the past year, we achieved a 20 per cent growth in profit before tax, reaching Ksh10.05 billion compared to Ksh7.6 billion in the previous year. As a result, we have managed to remit Ksh7 billion in dividends to the National Treasury,” Sang announced.

In March 2024, KPC had already remitted Ksh5 billion to the Treasury, a move attributed to increased sales and the impact of a weakening shilling against major foreign currencies.

The improved financial performance comes amid a government initiative to streamline state corporations and reduce financial losses in non-performing entities.

On January 21, the Cabinet approved reforms targeting state corporations, which include the dissolution of nine entities and the merger of 42 others into 20 organizations. The objective of these reforms is to eliminate inefficiencies and cut redundancy in government agencies.

However, KPC was not among the corporations listed for dissolution or merger. The government emphasized that KPC remains a vital institution in Kenya’s energy sector and plays a crucial role in supporting economic transformation under the Bottom-Up Economic Transformation Agenda.

“KPC is a key player in Kenya’s energy industry and remains essential for the country’s economic growth. We consider KPC one of the fundamental components in delivering our Bottom-Up Economic Transformation Agenda,” Owalo stated.

Last year, President William Ruto directed all state corporations to remit 80 per cent of their profits after tax to the Treasury. This directive was aimed at increasing government revenue and reducing reliance on borrowing.

Reaffirming the government’s strict stance on financial sustainability, President Ruto declared, “The era of loss-making parastatals is over. Every institution must justify its existence by demonstrating financial sustainability and efficiency.”

Organisations which are perpetual non-performers should be allowed to die their natural deaths. Either you justify your existence or face closure – Eliud Owalo reads riot act to underperforming public institutions pic.twitter.com/btXT2ZKXp5

— Kenyans.co.ke (@Kenyans) February 1, 2025
Follow on WhatsApp Follow on Facebook
Share. WhatsApp Facebook Twitter LinkedIn Email Copy Link
Avatar photo
Judith Mwaura
  • Website

Judith Mwaura is a dedicated journalist specializing in current affairs and breaking news. She is passionate about delivering accurate, timely, and well-researched stories on politics, business, and social issues. Her commitment to journalism ensures readers stay informed with engaging and impactful news.

Related Posts

NIS Director Noordin Haji and Speaker Moses Wetangula Among 105 Lawyers Seeking Senior Counsel Title

October 9, 2025

KUCCPS Issues Directive to Universities and Colleges Ahead of KCSE Exams

October 9, 2025

Residents Flee, Businesses Closed as Boda Boda Riders Clash

October 9, 2025

Babu Owino’s Message to Gachagua and Opposition Leaders Ahead of 2027

October 9, 2025

Kenyatta University Hospital Clarifies Reports of Mass Recruitment at the Facility

October 9, 2025

Obinna Takes Action After Accusations of Causing Shalkido’s Death

October 9, 2025
Leave A Reply Cancel Reply

Recent News

NIS Director Noordin Haji and Speaker Moses Wetangula Among 105 Lawyers Seeking Senior Counsel Title

October 9, 2025

KUCCPS Issues Directive to Universities and Colleges Ahead of KCSE Exams

October 9, 2025

Residents Flee, Businesses Closed as Boda Boda Riders Clash

October 9, 2025

Babu Owino’s Message to Gachagua and Opposition Leaders Ahead of 2027

October 9, 2025

Kenyatta University Hospital Clarifies Reports of Mass Recruitment at the Facility

October 9, 2025

Obinna Takes Action After Accusations of Causing Shalkido’s Death

October 9, 2025

Kenyans to Start Earning Money for Watching Social Media Ads – Itumbi

October 9, 2025

Court Frees Man Found Trespassing Parliament, Claims to Be President Ruto’s Son

October 9, 2025

Government Clarifies CBA Stalemate as Lecturers’ Strike Intensifies

October 8, 2025

Panic as 33-Seater Bus Plunges Into River Along Waiyaki Way at Waruku

October 7, 2025
Popular News

Chaos as Female MPs Exchange Blows in Parliament Grounds

April 9, 2025

Kenya Power Urges Customers to Update Token Meters Before August 31 Deadline to Avoid Service Disruption

August 22, 2024

Court Rules on DIG Lagat’s Return to Office

July 14, 2025

How Sacked Officer Was Hired Back After Protests

April 24, 2025

How to Pay for College with Student Loans: A Comprehensive Guide

January 29, 2025

The Future of Lending: IT Trends to Watch

August 23, 2025

Rongai MP Paul Chebor and Kimilili MP Didmus Barasa under EACC investigation over a fake JKUAT diploma and degree scandals.

September 5, 2024

Matatu Tout Charged with Murder After Slashing Colleague’s Neck at Nairobi Stage

January 22, 2025

Benefits for Families of Police Officers Receives After Death

March 30, 2025

What Is a Good Expense Ratio for Mutual Funds?

August 18, 2025
Facebook X (Twitter) Instagram Pinterest
  • Home
  • General News
  • Trending News
  • Advertise With Us
  • About Us
  • Contact Us
  • Privacy Policy
© 2025 News Hub. Designed by News Hub.

Type above and press Enter to search. Press Esc to cancel.