State firm bosses face the axe after mergers

Ms Judy Kibaki, daughter of former president Mwai Kibaki.

By Griffins Omwenga
 She is among those likely to be affected in a shake-up of public institutions in new reforms meant to streamline government operations if the Brand Kenya Board is dissolved after about five years of existence. Judy was appointed to the board last year as a director for three years. PHOTO/FILE 

In Summary

• 42 parastatals will be dissolved while 28 others will be merged.

The jobs of senior civil servants heading 80 key parastatals are on the line after President Uhuru Kenyatta approved a shake-up of public institutions in new reforms meant to streamline government operations.

Among those that are either facing the axe or redeployment include Mr Paul Muthaura, CEO of the Capital Markets Authority, Mr Edward Odundo, who is the Retirement Benefits Authority chief executive and Mr Sammy Makove, the Insurance Regulation Authority (IRA) boss, Ms Mary Kimonye, the Brand Kenya Board chief executive and Mr Muriithi Ndegwa, the Kenya Tourist Board managing director.

The Presidential Task Force on Parastatals Reforms was co-chaired by the President Kenyatta’s constitutional and legal affairs adviser, Mr Abdikadir Mohammed, and the Commercial Bank of Africa CEO, Mr Isaac Awuondo.

The president has said that the recommendations will be implemented in three months, which means they will be in force early next year.

According to the report, 42 parastatals will be dissolved while 28 others will be merged.

Twenty two will have their roles transferred to other institutions.

For instance, the role of CMA will be transferred to the Kenya Financial Supervisory Council (KFSC), which means that Mr Muthaura’s position could be done away with.

Also in the same situation is Mr Makove, whose docket under KFSC.

The IRA has been in charge of regulating over 43 insurance companies. Mr Odundo of RBA could be similarly affected as the organisation’s functions will also fall under KFSC as the government moves to put all financial regulatory services under one institution.

RBA is an arm of the Treasury mandated with regulating and supervising retirement benefit schemes.

The Sacco Societies Regulatory Authority (Sasra) — which supervises 240 saccos — will also join KFSC, which means that Mr Carilus Ademba could be redeployed.

Marketing Kenya

The Brand Kenya Board will also see its first and last chief executive, Ms Mary Kimonye, if it is dissolved after about five years of existence.

Charged with marketing Kenya locally and abroad, the agency will now be part of the Kenya Investment Corporation (KIC).

Among those likely to be affected is former President Kibaki’s daughter, Judy, who was appointed to the board last year as a director for three years.

Established in 1992, the Export Promotion Council will also be  part of KIC, meaning that Ms Ruth Mwaniki’s position as the chief executive will become defunct.

KenInvest MD Moses Ikiara could also find himself sailing in the same boat once KenInvest becomes part of KIC.

KTB boss Muriithi Ndegwa will also see his corporation merged with the other agencies which market Kenya as an investment or tourist destination. Others whose fates hang in the balance are Small and Micro Enterprises Authority chief executive Patrick Mwangi who has been in office for less than a year.

The authority came into existence in January but will now be under the umbrella of Biashara Kenya. The new outfit will also absorb the Youth Enterprises Development Fund.

The Kenya Forest Service, Kenya Wildlife Service (KWS) and Kenya Water Towers Agency will also be consolidated to form the Kenya Wildlife and Forest Service. This means that KWS director William Kiprono’s job could be in the balance, just as that of the acting water towers boss, Mr Hassan Noor Hassan.

The Kenya Industrial Property Institute, The Anti-Counterfeit Agency and the Kenya Copyright Board will also be merged into one to form Kenya Intellectual and Industrial Property Corporation.

KIPI managing director Henry Kibet Mutai and the Kenya Copyright board boss Maurice Okoth could soon have no corporations to head.

Also in the merging queue are the Kenya Plant Health Inspectorate Services (KEPHIS) and the National Biosafety Authority which will be joined to form the Kenya Plant and Animal Health Inspectorate Services. The new entity will be responsible for protecting plants and all genetically modified organisms.

Mr Mohammed’s team presented its report to Mr Kenyatta two weeks ago. If implemented in full, it will lead to the trimming of parastatals from the current 262 to 187.

Yesterday, Mr Mohammed said there was more to reform than just jobs. “If there are problems, you don’t shy away from seeking solutions to them,” he told the Nation in a telephone interview.

He said there were institutions which will wait for the conclusion of talks between the national and county governments to agree on their roles.

“Once the talks have been concluded, then the institutions may remain in place or be transferred to counties,” he said and criticised those saying jobs will be lost for creating unnecessary tensions.

Deputy Minority Leader Jakoyo Midiwo also defended the report saying it only proposed the merging of institutions.

“As far as I am concerned no one will lose a job. We expect the President to prepare a Cabinet memo before bringing the report to Parliament for discussions,” he said.

Additional reporting by Born Maina