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The government has frozen recruitment, promotions, and contract renewals in 42 state corporations, pending a massive restructuring.
The directive, signed by Head of Public Service Felix Koskei, instructs the affected parastatals to immediately halt all staffing changes and submit detailed reports to a high-level committee overseeing the reforms.
This move is part of President William Ruto’s broader agenda to reduce government inefficiencies, cut costs, and streamline overlapping mandates.
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Which parastatals are affected?
The freeze covers 42 government agencies, including big-name employers like the Kenya Airports Authority (KAA), Kenya Medical Supplies Authority (KEMSA), Kenya National Examinations Council (KNEC), and the Kenya Revenue Authority (KRA).
Some of these corporations are earmarked for merger into 20 leaner entities.
Others, about 25 in total, face complete dissolution, with their roles to be taken over by parent ministries.
Additionally, six will undergo restructuring to better align with national priorities.
“All human resource actions are to be suspended with immediate effect,” Koskei’s memo states.
“This includes recruitment, promotions, and contract extensions.”
Why the drastic move?
According to the government, many of these corporations have become bloated, inefficient, or redundant.
Some perform functions already handled by other bodies. Others have poor accountability or overlapping mandates that lead to wasteful spending.
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The Technical Committee leading the charge, chaired by Interior Principal Secretary Raymond Omollo, is demanding full financial, staffing, and performance reports from all 42 affected entities.
Their goal: eliminate duplication, cut fat, and redirect resources to where they’re most needed.
This aligns with President Ruto’s promise to overhaul public service and ensure value for money in every shilling spent.
What happens next?
Each agency will be reviewed individually. If they pass the audit, they may resume hiring, but likely with a leaner mandate and smaller staff size. Others will be absorbed or phased out completely.
The freeze will remain in place until the government concludes the full restructuring process.
Sixteen State Corporations to Be Divested or Dissolved
Nine State Corporations have been earmarked for dissolution, with their functions set to be transferred back to the relevant ministries or consolidated under other State entities.
These include:
Kenya Tsetse Fly and Trypanosomiasis Eradication Council – Its responsibilities will be integrated into existing agricultural and veterinary services under the Ministry of Agriculture.
Kenya Fish Marketing Authority - The Ministry of Blue Economy and Fisheries will take over its functions.
Centre for Mathematics, Science, and Technology Education in Africa (CEMASTEA) – Its mandate will be absorbed into Kenya’s education sector reforms.
President’s Award Kenya – The program will now be managed directly under the Ministry of Youth Affairs.
Nuclear Power and Energy Agency (NuPEA) – The agency’s role will be integrated into the Ministry of Energy’s broader energy policy framework.
Kenya National Commission for UNESCO – The Education Ministry will oversee its functions.
Kenya Film Classification Board (KFCB) – The Ministry of Youth Affairs, Creative Economy and Sports will handle the regulation of film content.
National Council for Nomadic Education – The Ministry of Education will absorb its mandate into its national education programs.
LAPSSET Corridor Development Authority – The relevant ministries will now manage infrastructure development projects under LAPSSET.
Sixteen State Corporations to Be Divested or Dissolved
In a move to reduce state involvement in areas where the private sector is better positioned to provide services, 16 corporations with outdated mandates will either be privatised or dissolved. These include:
Numerical Machining Complex
Scrap Metal Council
Kenya Fishing Industries Corporation
Jomo Kenyatta Foundation
Pyrethrum Processing Company of Kenya Ltd
Kenya National Shipping Line
School Equipment Production Unit
Kenya Yearbook Editorial Board
Kenya National Assurance Company
Coast Development Authority
Ewaso Ng’iro South Development Authority
Ewaso Ng’iro North Development Authority
Kerio Valley Development Authority
Lake Basin Development Authority
Tana and Athi Rivers Development Authority
Kenya Post Office Savings Bank