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The reforms, announced after the first Cabinet meeting of 2025 held at State Lodge, Kakamega, seek to eliminate redundancies, enhance service delivery, and reduce reliance on government funding.
The overhaul follows an assessment by the National Treasury, which reviewed 271 State Corporations, excluding those slated for privatisation.
The findings revealed operational inefficiencies and financial mismanagement that have contributed to a backlog of pending bills amounting to Sh94.4 billion as of March 31, 2024.
Key Changes in the Reform Package
The reforms will see 42 State Corporations with overlapping or related mandates merged into 20 entities to improve efficiency and cut costs.
Below is a detailed list of the State Corporations merged under the new reforms:
Higher Education Financing
Merged Entities: University Fund and Higher Education Loans Board
Tourism Promotion
Merged Entities: Kenya Tourism Board and Tourism Research Institute
Economic Zones Management
Merged Entities: Export Processing Zones Authority and Special Economic Zones Authority
Intellectual Property and Anti-Counterfeiting
Merged Entities: Anti-Counterfeit Authority, Kenya Industrial Property Institute, and Kenya Copyright Board
Industrial Development
Merged Entities: Kenya Industrial Research and Development Institute and Kenya Industrial Estates
Agricultural Finance
Merged Entities: Agricultural Finance Corporation and Commodities Fund
Environmental Conservation
Merged Entities: Kenya Forest Service and Kenya Water Towers Agency
Agricultural Development
Merged Entities: Agricultural Development Corporation and Kenya Animal Genetic Resource Centre
Irrigation and Water Resource Management
Merged Entities: National Irrigation Authority and National Water Harvesting and Storage Authority
Legal Reforms and Reporting
Merged Entities: Kenya Law Reform Commission and National Council for Law Reporting
Tourism Funding
Merged Entities: Tourism Promotion Fund and Tourism Fund
Education Regulation
Merged Entities: Commission for University Education, Technical and Vocational Education and Training Authority, and Kenya National Qualifications Authority
Road Infrastructure
Merged Entities: Kenya Rural Roads Authority and Kenya Urban Roads Authority
Trade and Investment Promotion
Merged Entities: Kenya Investment Authority and Kenya Export Promotion and Branding Agency
Water Services Regulation
Merged Entities: Water Services Regulatory Board, Water Regulatory Authority, and Regional Centre on Ground Water Resources, Education, Training, and Research.
National Trade Management
Merged Entities: Kenya National Trading Corporation and National Cereals and Produce Board
Youth and Women Empowerment Funds
Merged Entities: Uwezo Fund, Women Enterprise Fund, and Youth Enterprise Development Fund
Medical Research
Merged Entities: Kenya Medical Research Institute and Kenya Institute of Primate Research
Plant Health and Biosafety
Merged Entities: Kenya Plant Health Inspectorate Service and National Bio-Safety Authority
Agriculture and Food Regulation
Merged Entities: Agriculture and Food Authority