Uhuru and Ruto to restructure parastatals


A looming purge in state corporations has raised anxiety among chiefs of key parastatals as the Jubilee administration seeks to complete the final phase of restructuring state-owned entities.

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President Uhuru and Deputy President William Ruto are keen to implement fully a special report from the Presidential Task Force on Parastatals Reforms submitted in November last year.

The report recommends downsizing government while targeting to raise productivity and competitiveness in service delivery.

The impending announcement will see non-performing parastatal chiefs axed, while entities with cross-cutting mandates will be merged.

Upon receiving the report, Uhuru directed that its recommendations be implemented in three months.

The task force was co-chaired by the President’s constitutional affairs adviser Abdikadir Mohammed and Isaac Awuondo, the CEO of the Commercial Bank of Africa.

The report aimed at rationalising functions to remove overlaps, duplication and redundancies, thereby trimming the number of State Corporations from 262 to 187.

Uhuru and Ruto are said to be keen in naming competent individuals to take up the leaner state corporation sector to ensure efficiency and effectiveness in delivery of services competitively and also ensuring regional balance.

The looming shake-up is also aimed at shoring up support for the Jubilee administration in the wake of pressure from Cord, which is pushing for a referendum.

The report recommended that CEOs for all state corporations be appointed for four-year terms renewable based on performance determined through transparent evaluation.

The recruitment process will be done openly and competitively.

– the-star.co.ke

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