Uhuru Moves To Overhaul Gov’t Parastatals

stuff geneva; font-size: small; line-height: 200%;”>The President said a Government owned entities reforms implementation committee will be established to facilitate, oversee and monitor implementation of the recommendations.

The committee will also liaise with various actors to develop capacity to implement the recommendations, and provide monthly progress reports, he added.

President Kenyatta said the government was fully committed to restructuring parastatals to boost their efficiency and effectiveness.

“No comprehensive review of the sector had been undertaken by the Government in the past. A draft parastatals Bill is ready,” the President said on Wednesday.

He was speaking, at State House Nairobi, when he received a report on the Presidential Task Force on Parastatals Reforms. The report was presented by the two co-chairs, President’s constitutional affairs adviser Abdikadir Mohammed and Mr. Isaac Awuondo the CEO of the Commercial Bank of Africa.

President Kenyatta named the 10-member task force last July. It’s mandate was to review the current policy on parastatals and to address the emerging challenges.

The Task Force was also mandated to develop a clear vision to ensure that the state corporations achieve national economic goals.

The Task Force recommended a unified code of governance with principles aligned to the Constitution and benchmarked against global best practices.

President Kenyatta said implementation of the recommendations would address poor governance and mismanagement of Parastatals.


“The sector will be rationalized to remove overlaps, duplication and redundancies thereby trimming the current number of State Corporations from 262 to 187, as recommended by the task force,” the President assured.

He said the performance management framework that creates a mechanism for accountability by all the Parastatals sector workers, will be implemented to the letter.

He said the Government will use Parastatals as avenues to grow wealth while at the same time offering effective and efficient services to the citizens.

“For effective and complementary engagement between the state and markets, there must be a clear separation of policymaking, regulation and service delivery roles,” Mr Mohamed said.

He stressed the need for effective and appropriate operational distance between government owned entities, the treasury and sector ministries, to optimize on the limited capacities to manage them.

Mr Awuondo said clear methods of establishing and dissolving parastatals must be developed.

Other members of the task force include Dr Kamau Thugge (National Treasury), Mr Mugo Kibati (Vision 2030), Mr Korir Sing’oei (Deputy President’s Office), mrs Stella Kilonzo (Private Sector), ms Angalie Mediratta (private sector), Mr Nelson Kuria (CIC Group), Ms Carole Kariuki (KEPSA) and Mr. Edward Burbidge (Burbidge Capital Ltd).

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