The National Treasury faces a tough decision on the restructuring of state agencies as part of its fiscal structural reforms to cut the government wage bill. Development issues were Sh286 billion against a revised estimate of Sh401.4 billion, according to the National Treasury statement of actual revenues and net exchequer published on Friday. The task force which was led by the President's former constitutional affairs adviser Abdikadir Mohammed had recommended the trimming of the number of state agencies from 262 to 187. Some of the ministries with a high number of state agencies include agriculture, transport, tourism, energy, industrialisation, trade and enterprise development, and sports, culture and heritage, which could face a major rationalisation. According to the Consolidated National Government Investment Report for the year financial year 2019/20, at least 127 state agencies out of 247 state firms reported losses in their end year results.

Source: The Star June 24, 2021 00:56 UTC