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Government Begins Relocation of Civil Servants as Parastatal Mergers and Restructuring Take Effect

Judith MwauraBy Judith MwauraJanuary 23, 2025No Comments3 Mins Read
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The Kenyan government has started relocating civil servants just two days after the Cabinet approved major reforms, including the dissolution of nine state corporations, the merger of 42 others, and the restructuring of six government agencies.

On Wednesday, Environment Cabinet Secretary Aden Duale transferred 113 employees from the Kenya Water Towers Agency (KWTA), which has been dissolved, to two other government agencies.

This action comes after the Cabinet gave the green light for the merger of KWTA and the Kenya Forest Service (KFS).

According to Duale, all 113 employees from the now-defunct KWTA have been absorbed into the Ministry of Environment, Climate Change, and Forestry, while some have been reassigned to KFS.

Out of the 113, 68 employees have been moved to the Ministry, while 45 have been relocated to KFS. The government plans to transfer up to 5,000 civil servants as part of its larger initiative to streamline the operations of state-owned enterprises.

Duale reassured the public, saying, “None of our 113 staff are jobless,” following concerns about the fate of the affected civil servants.

Hours after his statement, State House spokesperson Hussein Mohammed further assured the public that no civil servant would lose their job due to the restructuring process.

The Cabinet’s decision on Tuesday saw the dissolution of nine state enterprises, while another 16 are set to be sold or liquidated.

Additionally, 42 state corporations with overlapping functions will be merged into 20, as part of an effort to reduce government spending and eliminate waste.

While the Cabinet’s actions have raised concerns about the job security of civil servants, President William Ruto’s administration insists that the reforms are aimed at improving efficiency and service delivery.

The government stated that the changes would help reduce the burden on the national budget, improve financial stability, and enhance the overall performance of state corporations.

The merger and dissolution of just nine state corporations may seem like a small step, considering that a report by the State Corporations Advisory Committee (SCAC), presented to former President Uhuru Kenyatta in 2013, recommended the dissolution of over 300 parastatals.

However, during his tenure, Kenyatta opted not to take action and instead reduced funding for most of these institutions.

Since President Ruto took office in 2022, he has reinstated funding for these agencies and appointed new members to their boards.

However, doubts have emerged regarding the motivations behind the current Cabinet reshuffle, with some suggesting that it is part of an effort to meet conditions set by the International Monetary Fund (IMF).

The IMF has warned that several state corporations are struggling financially, with their liabilities, including debts, far outweighing their assets.

According to a public sector report for the period ending June 2023, Kenya’s public sector faces significant financial imbalances, leaving it vulnerable to external economic shocks.

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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.

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