Six development authorities to be disbanded under government reform plan

Six development authorities to be disbanded under government reform plan

The disbandment is part of a broader government plan to align state functions with the 2010 Constitution, which introduced devolution and rendered some institutions redundant.

Six regional development agencies will cease to exist by the end of June next year as the government moves to streamline service delivery and eliminate duplication of roles under Kenya’s devolved system.

Among them are the Tana and Athi Rivers Development Authority, Kerio Valley Development Authority, Lake Basin Development Authority, Ewaso Ng’iro North Development Authority, Ewaso Ng’iro South Development Authority, and Coast Development Authority.

The disbandment is part of a broader government plan to align state functions with the 2010 Constitution, which introduced devolution and rendered some institutions redundant.

Budget estimates for the 2025/2026 financial year show that the six agencies will be dissolved, with their assets, liabilities and personnel transferred to both national and county governments by June 30, 2025.

The Cabinet, during its sitting on March 7, 2024, instructed the Ministry of East African Community and Regional Development to assess the relevance of the six authorities. The directive followed findings that the Acts of Parliament under which these agencies were established had been overtaken by constitutional changes.

“That, the Intergovernmental Relations Technical Committee (IGRTC) provides the National Assembly with a detailed roadmap and timelines on the proposed dissolution of the six regional development authorities and the eventual transfer of assets, liabilities and personnel to the two levels of government by June 30, 2025,” MPs had earlier proposed.

Treasury Cabinet Secretary John Mbadi confirmed the move in budget documents tabled before Parliament, noting that implementation plans are already in place.

“Annex 4 of this Budget Summary provides a statement of a detailed roadmap and timelines on the proposed dissolution of the six Regional Development Authorities and the eventual transfer of assets, liabilities and personnel to the two levels of government by June 30, 2025,” Mbadi said.

The proposed dissolution aligns with a wider reform agenda championed by President William Ruto, who in January announced that 42 state corporations with related or overlapping mandates would be consolidated into 20 entities. The changes, endorsed during a Cabinet meeting, aim to reduce wasteful spending and improve efficiency across government institutions.

“These reforms have been necessitated by increasing fiscal pressures arising from constrained government resources, the demand for high-quality public services, and the growing public debt burden,” read a memo from the Cabinet meeting.

The Cabinet decision was informed by a National Treasury review of 271 state corporations, excluding those marked for privatisation, which exposed widespread inefficiencies, including failure by many agencies to fulfil their legal mandates.

The assessment revealed that pending bills owed by these entities had reached Sh94.4 billion as of March 31, 2024.

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