Looming mergers now put State corporations on edge

PS Abubakar Abubakar (center), KenInvest Chairperson Sally Mahihu (right), and Managing Director June Chepkemei during the launch of the corporation's strategic plan last December. [Edward Kiplimo, Standard]

Plans to merge several State corporations have caused anxiety among agencies with overlapping roles as they craft ways to stay relevant. 

While others like Vision 2030 Delivery Secretariat (VDS), whose end is imminent due to the timelines of its mandate, others like Kenya Trade Network have developed mitigation strategies in expectation of the mergers. 

An analysis of the latest strategic plans of some of these agencies among them Kenya Investment Authority (KenInvest), reveals how the looming changes have not only derailed the implementation of the previous strategic plans but have also spawned staff attrition. 

The proposed merger of KenInvest with other Ministries, Departments, and Agencies (MDAs) is listed as one of the challenges in its 2023-2027 strategic plan. 

It says the merger plan caused it to lose focus on implementing the previous strategic plan 2018-2022. It also diluted its efforts and reduced its effectiveness in attracting and facilitating investments. 

The plan, KenInvest says, has also made it unattractive to workers, hence its inability to retain crucial talents. 

“It becomes more difficult for KenInvest to attract and retain talented individuals. Without sufficient resources, the Authority was unable to offer competitive salaries, benefits, and professional development opportunities that can attract and retain high-caliber employees,” says KenInvest in the strategic plan. 

“This can negatively impact the overall effectiveness and productivity of the organization.” 

In September 2023, during the Kenya International Industrial Expo, KenInvest Managing Director June Chepkemei noted how the fragmentation of other State agencies has affected the Authority’s role. 

“The challenge has been data on the actual Foreign Direct Investment (FDI) that comes into the country. It is as a result of fragmented efforts in investment promotions and FDI attraction,” she said. 

Ms Chepkemei noted that the amount of FDI to the county that did not pass through KenInvest could be to the tune of Sh560 billion.  While KenInvest is responsible for attracting FDI, the Kenya Export Promotion and Branding Agency (KEPROBA) seeks to sell Kenya overseas, which might also lead to more investments. 

This is another State body that lives in fear of being merged with other MDAs. KEPROBA’S role also extends to promoting exports. 

KEPROBA was formed by merging the Export Promotion Council and Brand Kenya Board in 2019. 

“The merger was a consolidation of efforts and the need for a coordinated approach in promoting Kenya as a source of authentic high-quality products. The agency’s mandate, therefore, revolves around Export and Nation Brand Development,” says KEPROBA in its 2023/24 -2027/28 draft strategic plan. 

Following the merger, KEPROBA notes, there has been limited publicity about the agency. 

“As such, little is known about it by the stakeholders. Other stakeholders are still confused about the entity and continue to refer to it with the name of any of the constituent agencies forming it,” it says. 

As a result, KEPROBA seeks to undertake publicity campaigns to build awareness. 

KEPROBA details that since its establishment of the institution, they have had overlapping and competing identities, resulting in inconsistent brand messaging. 

“This leads to brand confusion by stakeholders. Thus, the Agency needs to establish clear and consistent brand messaging and align or harmonize its messaging across its digital communication channels,” it says. 

Kenya Trade Network Agency (KenTrade), whose role from face value could be similar to KenInvest and KEPROBA, also lists mergers of State corporations as one of the risks it faces in its 2023-2027 strategic plan. 

The agency, however, says the likelihood of a merger is low even as it outlines its plan towards these changes. 

“Effective trade facilitation through the Single Window System and other e-commerce innovations, self-sustainability through the generation of income by KenTrade and onboarding many users to attract government support,” says the agency in its mitigation plan in the wake of the planned mergers. 

Vision 2030 Delivery Secretariat (VDS) is another agency whose merger or closure is imminent considering its operative timeframe that should end in just six years. 

The 2023/24-2027/28 strategic plan is the last from the Secretariat with the plan detailing that a substantive one will be made to cover for the remainder of the period. 

VDS states that the likelihood of its closure or merger with other State agencies is high as it details the mitigation plan. 

“Re-establish VDS on a stronger legal framework and; develop and implement an ambitious but implementable VDS transition plan,” reads the plan by the Secretariat.