Thousands to lose jobs as IMF clean-up of State firms begins

Kenya Power workers fix a 3 phase distribution transformer of 250KVA at Ndimaini Village in Karatina, Nyeri on December 28, 2020. [Kibata Kihu, Standard]

The purge of cash-strapped State-owned enterprises (SOEs) that is being driven by the International Monetary Fund has started in earnest, with thousands of workers expected to lose their jobs.

The National Treasury has completed a financial health check on 18 parastatals that unearthed a cumulative five-year financial shortfall of Sh70 billion, which means that a good number of the parastatals are in the red with liabilities exceeding their assets. Consequently, National Treasury Cabinet Secretary Ukur Yatani said the government will undertake a rigorous restructuring of the State corporations.