The government is planning to to merge three state corporations to enhance service delivery, Deputy President William Ruto has said.
Ruto said on Friday that plans were underway to merge the Agricultural Finance Corporation (AFC), National Cereals and Produce Board (NCPB) and the Agricultural Development Corporation (ADC).
He noted that some state corporations perform closely related duties so a merge witll improve efficiency and cut wastage.
“There is no reason why we should not merge the three because the move aims at increasing efficiency, resolving overlaps and making better use of resources that can lead to economic prosperity," he said.
The Deputy President also noted that the economic performance of some state corporations has deteriorated to unacceptable levels and that this decisive action will result in a turnaround.
“We need to review the performance of some state corporations and make painful decisions with a view to ensuring they live to the expectations of Kenyans,” he said.
He noted: “A robust agricultural sector is key to the country’s economic development and improvement of the people's living standards. These state corporations have no choice but to merge.”
The DP spoke in his office at the Harambee House Annex in Nairobi while launching a 14-member task force on the move.
The task force comprises officials from the Agriculture ministry, Office of the Deputy President, National Treasury, Public Service Commission, ADC, AFC and NCPB.
Members will come up with recommendations on how to transform and merge the three state corporations within three months.
Agriculture Cabinet Secretary Mwangi Kiunjuri and Principal Secretary Richard Lesiyampe were among those who attended the meeting.
Lesiyampe said the ministry was looking into a weak financial clout and a limited legal regulatory environment, where the AFC was concerned.
“We are putting in place proper mechanisms to improve service delivery. They include restricting the governance structure of parastatals under the ministry,” he said.
He added that they will add a technical team to the task force
to help it execute its mandate effectively and within the stipulated time frame.
In January, the
government started a process of setting up one strong financial institution by merging the
functions of several organisations.
The institutions that will be merged to form the mega development finance institution include Kenya Industrial Estates, Development Bank of Kenya, Industrial Development Bank of Kenya, Uwezo Fund, Youth Enterprise Development Fund and Women Enterprise Development Fund.