More State agencies to be merged, dissolved to eliminate duplication of roles

More State agencies to be merged, dissolved to eliminate duplication of roles

More State agencies that duplicate county functions will undergo restructuring, merger, or dissolution as the government intensifies efforts to streamline devolution, the Intergovernmental Relations Technical Committee (IGRTC) has revealed.

The move comes barely three months after the Cabinet approved the consolidation of 42 agencies to eliminate redundancy and enhance efficiency in service delivery.

IGRTC has identified additional agencies whose mandates overlap with or interfere with county functions, putting them on the chopping block.

IGRTC Chief Executive Officer Kipkirui Chepkowny said the initiative aims to accelerate the full transfer of devolved functions to county governments.

However, beyond issuing a Gazette Notice to effect the changes, IGRTC Chairperson Kithinji Kiragu said the most significant challenge will be ensuring that counties have the necessary resources to execute these functions effectively.

"The greatest challenge ahead is to transfer the resources and build the capacity of county governments," Kiragu said.

"This extends beyond financial allocations to include human resources and facilities that will enable the county governments to perform these functions better."

Kiragu emphasised the need for coordination between different levels of government to ensure effective budget rationalisation.

"But what is more important is for all levels of government to work together to rationalise the budgets," he added.

According to Kiragu, the committee aims to conclude the restructuring process by March 2025, ensuring that funds are allocated in the 2025/2026 financial year to facilitate smooth operations in the devolved units as they assume new roles.

Additionally, the IGRTC has identified key pieces of legislation that require amendments or repeal to ensure the seamless transfer of devolved functions to counties.

"And so we have between now and July 1, 2025, as it was resolved to be able to sensitise and have everybody have a common understanding on the new elements and the impact of the transfer of roles," Chepkowny said.

Addressing stakeholders from both national and county governments, Chepkowny reiterated that the primary goal is not just the transfer of functions but also ensuring counties receive adequate funding to effectively execute their new mandates.

In January, the Cabinet approved a major restructuring of State corporations, ordering the merger of 42 entities into 20 to eliminate duplication of roles.

A Cabinet dispatch at the time indicated that the decision aligned with the government's broader strategy to enhance efficiency, reduce operational excesses and cut wastage.

"The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the Exchequer," the Cabinet said.

"The National Treasury assessed 271 State Corporations, excluding those earmarked for privatisation."

Additionally, the Cabinet directed that nine State corporations be dissolved, with their functions transferred to relevant ministries or other State agencies. Sixteen corporations with outdated functions that could be handled by the private sector will either be dissolved or divested.

President William Ruto assured that there would be no job losses reiterating that the decision is only aimed at streamlining state operations and reducing wastage of public resources.

“This is in line with the commitment to streamline government operations, reduce waste, and curb excesses. The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the Exchequer."

 

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