Parastatal reforms will save money and significantly benefit counties

A view of residential houses in Githurai 44. [Wilberforce Okwiri, Standard]

State corporations, or parastatals, have contributed immensely to Kenya’s economic and social development. But given the current poor financial state and performance of a majority of them, the government needs to fast-track the national strategy on parastatal reforms.  

There are currently about 260 state-owned enterprise (SOEs) in Kenya cutting across the major sectors of the economy. Majority of them are struggling with financial and governance issues requiring urgent action. This is because they account for a sizeable share of the national budget in the form of grants, subsidies, loans and debt guarantees.