Economy

Paratatals face restructure in BBI law change proposal

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President Uhuru Kenyatta and former Prime Minister display a copy of BBI Report during the presentation at Kisii State Lodge. PHOTO | PSCU

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Summary

  • Parastatals involved in county functions will either be wound up or restructured if Parliament approves the recommendation of the Building Bridges Initiative (BBI) reforms task force.
  • The BBI steering committee says rationalisation of government-owned entities falling under devolved functions will avoid duplication, wastage and conflicts.
  • If the BBI report is implemented, most parastatals currently under the Devolution, Agriculture, Water and Roads ministries and headquartered in Nairobi could be scrapped or restructured to perform their functions at the county level.

Parastatals involved in county functions will either be wound up or restructured if Parliament approves the recommendation of the Building Bridges Initiative (BBI) reforms task force.

The BBI steering committee says rationalisation of government-owned entities falling under devolved functions will avoid duplication, wastage and conflicts.

“Parastatals carrying out county functions should either be wound up or restructured. This should be synchronised with the implementation of the already completed parastatal reforms policy,” the report, handed over to President Uhuru Kenyatta and ODM leader Raila Odinga on Wednesday states.

The team, chaired by Garissa Senator Yusuf Haji, has called for full implementation of the Presidential Task Force on Parastatal Reforms.

If the BBI report is implemented, most parastatals currently under the Devolution, Agriculture, Water and Roads ministries and headquartered in Nairobi could be scrapped or restructured to perform their functions at the county level.

Mr Kenyatta was appointed the task force on July 23, 2013, to review and recommend policies on management and governance of State corporations.

The task force on parastatal reforms recommended, among other things, the rationalisation and consolidation of some State corporations to ensure they address national development priorities, including Vision 2030.

The task force report also recommended deliberate measures to separate commercial activities from the non-commercial roles of policymaking, regulation and service delivery. It proposed the establishment of a Government Investment Corporation.