A committee of the National Assembly is set to hand President William Ruto proposals to merge or scrap 15 State departments with duplicating functions, in a push to cut public expenditure.
The Budget and Appropriations Committee of the National Assembly says it will recommend to the President to consider merging 14 State departments and scrapping the Devolution docket, following presentations and memoranda from different groups and sectors.
If realised, the recommended shake-up would free up more cash in addition to expected savings from the planned winding up of 47 loss-making parastatals, as part of austerities following the decision to drop Finance Bill 2024.
“The committee has taken note of this recommendation and will put forward a proposal for consideration by the Executive,” the 27-MP committee, led by Kiharu legislator Ndindi Nyoro, said in its budget report tabled in the House this week.
The report shows Kenyans want merger of State Departments for Roads with Transport, the State Department for Vocational and Technical Training with Higher Education and Research, and Public Works with Housing and Urban Development.
They also want the merger of State Departments for Trade and Industry.
Others are Investment Promotion with Micro, Small and Medium Enterprises Development, Medical Services with Public Health and Professional Standards, and Parliamentary Affairs with Cabinet Affairs.
Kenyans are also pushing for the abolishment of the State Department for Devolution.
“They (Kenyans), affirmed that if the same (Devolution docket) is retained, then its capacity building and civic education budget should be reduced and money allocated to counties,” the Committee wrote in the report.
Treasury data shows the State departments recommended for merger cost taxpayers Sh175.5 billion in recurrent expenditures — the cost of day-to-day operation, administration, and staff remuneration — in the fiscal year ended June.
Even before the committee tables its proposals, the Treasury and Dr Ruto’s Council of Economic Advisors recommended the merger of State corporations with duplicating functions, winding up of struggling entities, and transferring their functions to other parastatals and line ministries.
