NAIROBI (Xinhua) --
Kenya said on Tuesday that it has started a
process to set up one strong financial institution that will
merge functions of several organizations that currently run
parallel and sometimes perform overlapping roles.
Head of Public
Service Joseph Kinyua said in a statement issued in Nairobi that
he has issued a circular to the affected agencies informing them
of the decisions to be implemented in the interim period.
According to Kinyua,
institutions that will be merged to form the mega development
finance institution include the Kenya Industrial Estates,
Development Bank of Kenya, Industrial Development Bank of Kenya,
Uwezo Fund, Youth Enterprise Development Fund and Women
Enterprise Development Fund.
“This move is in
line with the parastatal reforms that were recommended by the
president’s taskforce on parastatal reforms in 2013,” said
He said the move is
aimed at increasing efficiency, resolving overlaps and better
utilizing resources to achieve economies of scale.
According to the
plan, the new agency will become a one-stop shop for loans from
the government ranging from industrial development loans to
loans for a specific cadre of people such as women and the
Kinyua said the
government established an inter-agency taskforce to review the
legal regulatory and institutional framework involved in the
process in order to make the merger and transition seamless.
The taskforce has
already issued interim orders while it completes its work.
Kinyua informed the
agencies that have been identified for the merger that they
should put on hold any actions relating to restructuring,
recruitment of new staff (including CEOs), filling of vacancies
in boards and the review of terms of services for all staff.
“Any filling of
vacancies in the Boards as well as of CEOs across all identified
State Corporations/Funds should only be done after necessary
consultations with the Head of Public Service to ensure
consistency with recommended reforms,” he said.
Transfer of staff to
and from the identified agencies has also been frozen. The
circular also stops the disposal, transfer, lease or new
acquisition of assets.