Government plans to merge AFC, ADC and NCPB

Deputy President William Ruto when launching task force to oversee merger of three state corporations (PHOTO:Courtesy)

NAIROBI, KENYA: The Government plans to merge three state corporations to enhance service delivery, Deputy President William Ruto has said. 

Ruto said plans were underway to merge the Agricultural Finance Corporation (AFC), National Cereals and Produce Board (NCPB) and the Agricultural Development Corporation (ADC) to set up one strong corporation to improve service delivery for growth. 

Speaking when he launched a 14-member taskforce,  Ruto said some state corporations perform closely related duties, hence the need to merge them to improve efficiency and cut wastage. 

“I have no reason in my mind why we should not merge the three because the move aims at increasing efficiency, resolve overlaps and make better use of resources that can lead to economic prosperity of our country,” said Ruto. 

The taskforce comprises officials from the ministry of Agriculture, Office of the Deputy President, National Treasury, Public Service, ADC, AFC and NCPB. 

The taskforce’s duty is to come up with recommendations on how to transform and merge the three state corporations within three months. 

“This taskforce must come up with recommendations within 90 days on the best approach to merge AFC, ADC and NCPB to one strong outfit to enhance service delivery,” said Ruto. 

“A robust agricultural sector is key to the country’s economic development and improvement of the peoples living standards. These state corporations have no choice but to merge,” he added. 

Agriculture Principal Secretary Richard Lesiyampe said the ministry was focused on addressing a weak financial clout as well as limited legal regulatory environment especially on matters pertaining to AFC. 

“We are putting in place proper mechanisms that can improve service delivery including restricting the governance structure of parastatals under the ministry,” said Lesiyampe. 

He said the ministry would ensure a technical team was included in the taskforce to help it execute its mandate effectively and within the stipulated timeframe. 

The Deputy President said the economic performance of some state corporations has deteriorated to unacceptable levels, saying decisive action to turn them around was necessary. 

“We need to review the performance of some state corporations including taking painful decisions with a view to ensuring they live to the expectations of Kenyans as far as service delivery is concerned,” said Ruto.