Legal & Regulatory News

Ruto’s Cabinet Approves Merging 42 Corporations: What It Means for Kenya

Ruto Cabinet

In a landmark decision aimed at enhancing efficiency and cutting bureaucratic redundancies, President William Ruto’s government has proposed the consolidation of 42 state corporations into 20 streamlined entities. This announcement came during the first Cabinet meeting of 2025, held at State Lodge, Kakamega, and marks a significant step in the administration’s efforts to optimize governance and resource allocation.

President Ruto emphasized that this reform aligns with his broader vision of building a lean, inclusive, and results-driven government. The inclusive Cabinet, which brings together leaders from diverse political affiliations, sets the stage for transformative national development.


Why the Mergers?

Kenya’s state corporations play a crucial role in implementing government policies and delivering services. However, overlapping mandates, inefficiencies, and resource wastage have hindered their effectiveness. The proposed mergers aim to:

  1. Eliminate Redundancy: Consolidating corporations with overlapping roles reduces duplication of efforts.
  2. Enhance Efficiency: Streamlined entities can deliver services more effectively and at a lower cost.
  3. Optimize Resources: Pooled financial and human resources will lead to better outcomes and greater impact.
  4. Improve Accountability: Fewer entities mean easier monitoring, evaluation, and governance.

The Proposed Mergers: A Breakdown

Below is a detailed list of the 42 state corporations targeted for mergers, along with their proposed outcomes:

  1. University Fund & Higher Education Loans Board
    • New Entity: A consolidated body to oversee university funding and student loans, simplifying higher education financing.
  2. Kenya Tourism Board & Tourism Research Institute
    • New Entity: A unified tourism authority to promote and research the sector for sustainable growth.
  3. Export Processing Zones Authority & Special Economic Zones Authority
    • New Entity: A streamlined authority to manage Kenya’s export zones and attract foreign investment.
  4. Anti-Counterfeit Authority, Kenya Industrial Property Institute & Kenya Copyright Board
    • New Entity: An intellectual property body to combat counterfeiting and protect innovations.
  5. Kenya Industrial Research and Development Institute & Kenya Industrial Estates
    • New Entity: An innovation-driven institution to promote industrial growth and support SMEs.
  6. Agricultural Finance Corporation & Commodities Fund
    • New Entity: A single agricultural finance body to enhance support for farmers and agribusinesses.
  7. Kenya Forest Service & Kenya Water Towers Agency
    • New Entity: A consolidated environmental authority to manage forestry and water tower conservation.
  8. Agricultural Development Corporation & Kenya Animal Genetic Resource Centre
    • New Entity: An agricultural development body focusing on genetic resource preservation and innovation.
  9. National Irrigation Authority & National Water Harvesting and Storage Authority
    • New Entity: A water resource agency to oversee irrigation and water storage initiatives.
  10. Kenya Law Reform Commission & National Council for Law Reporting
  • New Entity: A legal body responsible for law reform and accurate legal reporting.
  1. Tourism Promotion Fund & Tourism Fund
  • New Entity: A unified fund to finance tourism development and promotion.
  1. Commission for University Education, TVET Authority & Kenya National Qualifications Authority
  • New Entity: An education standards body ensuring quality in tertiary and vocational training.
  1. Kenya Rural Roads Authority & Kenya Urban Roads Authority
  • New Entity: A single roads authority for urban and rural infrastructure.
  1. Kenya Investment Authority & Kenya Export Promotion and Branding Agency
  • New Entity: An investment and trade body to attract investors and promote Kenyan exports.
  1. Water Services Regulatory Board, Water Regulatory Authority & Regional Center on Ground Water Resources
  • New Entity: A regulatory authority for water services and groundwater resource management.
  1. Kenya National Trading Corporation & National Cereals & Produce Board
  • New Entity: A commercial body to manage national trading and food reserves.
  1. Uwezo Fund, Women Enterprise Fund & Youth Enterprise Development Fund
  • New Entity: A comprehensive funding agency for youth, women, and marginalized groups.
  1. Kenya Medical Research Institute & Kenya Institute of Primate Research
  • New Entity: A medical research institute to advance healthcare innovations.
  1. Kenya Plant Health Inspectorate Service & National Bio-Safety Authority
  • New Entity: An agricultural health body to oversee biosafety and plant health.
  1. Agriculture and Food Authority
  • Expanded Mandate: To encompass broader agricultural regulation and development functions.

Implications of the Mergers

  1. For Citizens:
    • Faster service delivery.
    • Streamlined access to government programs.
    • Improved accountability and transparency in resource allocation.
  2. For Businesses:
    • Simplified regulatory frameworks.
    • Enhanced investment opportunities in key sectors like agriculture, tourism, and manufacturing.
    • Reduced bureaucracy when dealing with government agencies.
  3. For the Government:
    • Significant cost savings.
    • Better resource management and utilization.
    • A more focused approach to implementing development goals.

Challenges and Risks

While the mergers promise significant benefits, they also come with potential challenges:

  • Transition Disruptions: Reorganizing institutions may temporarily disrupt service delivery.
  • Employee Concerns: Job losses or redeployments may cause dissatisfaction among staff.
  • Public Perception: Building confidence in the new entities will require clear communication and transparency.

The proposed mergers are a pivotal step in Kenya’s journey toward efficient governance. As citizens and stakeholders, your involvement is crucial. Share your views on how these changes will impact your community or business. Engage with government initiatives and monitor their implementation to ensure transparency and accountability.

Stay informed about policy changes and their implications for your industry by subscribing to our newsletter. Together, we can shape a better future for Kenya.