Massive job losses especially to election losers and cronies of top honchos are among the victims of the Kenya Kwanza administration’s decision to dissolve and merge State corporations.

According to the Cabinet memo released on Tuesday, the move to merge or dissolve corporations is in line with streamlining government operations, reducing waste and curbing excesses.

“The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the Exchequer,” the Cabinet resolved on Tuesday.

Some of those who lose elections have clung on to hope that they will make a comeback through parastatals’ appointments, an avenue which provides a chance to redeem themselves in public entities.

Last Week, President William Ruto appointed Aisha Jumwa as the non-Executive Chairperson to the Kenya Roads Board for a period of three years while Omanga was named a member of the Board of Directors of Kenya Shipyards Limited, though they have not been affected by the merger or dissolution.

During the same period Orange Democratic Movement (ODM) Treasurer Timothy Bosire declined President appointment to chair National Transport and Safety Authority (NTSA) Board.

Bosire confirmed the rejection, stating he was not consulted prior to the appointment.

Management and leadership expert, Prof Gitile Naituli has however said that rewarding those who lose in elections is bad democracy that should not be allowed to thrive.

He said that they should wait for the five-year election cycle to lapse for them to try their luck once again in an elective position.

He said is it not a good practice to appoint individuals who lost in an election to a public entity, a situation which accords them an even bigger job, after being rejected by the people.

“Rewarding losers is undermining democracy. It is also bad democracy and they should wait for another five years after losing an election. Kenyans are tired of a big government. If the President was to create say 14 Cabinet and Secretaries respectively, Kenyans would be very happy,” Naituli told the Standard.

He said that a huge government is taking too much resources while a smaller one will be more affordable, adding that some of the decisions that have been made arise from poor planning and failure to consult the public.

He also said that the president does not have the powers to dissolve or merge corporations since they are established by an Act of Parliament.

“What the President has done is to make a proposal, which he should table in Parliament so that it can remove the old law,” he explained.

Political analyst Barrack Muluka echoed similar sentiments saying that the need to reorganize State Cooperation sector has been long overdue, on account that most were done for purely political purposes and also others are inactive.

But as much as it is a welcome move, Muluka said this particular effort looks ‘a little knee-jerk and panicky’.

“That said and done, this particular effort looks like knee-jerk and panicky by a state that seems to be broke and which is just clutching almost a tennis straw that it finds in the waters.  I think there’s need to think very clearly about it and see which ones of those corporations could be marked, because even the explanation they’re giving does not make sense,” Muluka told the Standard.

He also questioned the sustainability aspect of the decision since the Government has declared it will still retain all employees.

“If you say you’re cutting down on costs and then you’re saying you’re going to retain all the employees, so what are you cutting down on costs?  They’re going to need offices, working space, they’re going to need working equipment, they’re going to need salaries.  So it’s difficult to understand what they’re cutting down on and it seems a little knee-jerk and panicky. (2:48) But we’ll wait and see what it turns out to be.

Muluka, however said that the Chairpersons and other senior appointees should go, noting that they mostly represent wastage.

“One hopes that that wastage does not get transferred to the ones who survive as bonus. However, it is a good idea but it needs to be processed thoroughly and reflectively. It should not be a panicky, knee-jerk kind of thing,” he said.

He said most of the corporations have been created by statutory law, which can only be annulled by Parliament.

Muluka explained that the president cannot issue directives, edicts and executive orders to remove certain parastatals but can only propose. 

“The President can only propose and then the matter would come before parliament as a government bill. However, there are those that are established by gazette notices and a number of them have not been formalized. If they are to be removed, another notice will have to be issued,” he explained.

Amid confusion on the way forward, State House Spokesperson Hussein Mohamed clarified that no State Corporation function or jobs will be lost since all affected employees will be absorbed into the public service.

“This is line with the commitment to streamline government operations, reduce waste, and curb excesses. The reforms will address operational and financial inefficiencies, enhance service delivery, and reduce reliance on the Exchequer,” said Mohamed yesterday.