The Kenyan government plans sweeping changes to state corporations in its 2025/26 budget, proposing to merge 42 state corporations into 20 entities.
Under the reforms, at least nine parastatals will be dissolved, and some of their functions will be transferred back to parent ministries.
Six state corporations will be restructured to align their mandates with current priorities. The changes aim to cut costs, reduce duplication, improve efficiency, and reduce reliance on government subsidies.
The reforms also seek to declassify certain public funds and professional bodies as state corporations so they no longer receive exchequer funding.
