“In line with the government efforts for fiscal consolidation, the National Treasury has undertaken a preliminary assessment for 288 State corporations to determine their viability and or recommend necessary action,” Prof Ndung'u said in a summary report on the 2024/25 Budget Estimates tabled in Parliament on Tuesday.
“From the preliminary assessment, 158 State corporations which are strategic will be retained. 40 State Corporations and two government-linked corporations (GLCs) are proposed for restructuring.”
Prof Ndung'u said seven corporations' mandates or functions require policy guidance while 25 are earmarked for privatisation. He said the 25 are at various stages of implementation but had been stalled following the suspension of the proposed 2023 privatisation programme by the High Court.
The CS said the assessment, which is ongoing, will identify duplications and overlaps, especially the statutes establishing them.
The CS made the disclosures following a House resolution requiring the Treasury to expedite the review and report to the National Assembly by June 30.
“Going forward, stakeholder engagement on the reforms will be undertaken in the month of May 2024, following which the report and recommendations will be submitted to Cabinet for approval and subsequently submitted to the National Assembly by June 30, 2024.”
