Head of Public Service Joseph Kinyua (Photo / Nation Breaking News)
The government is planning to merge six financial institutions that often perform overlapping roles to form one form one mega development bank, this is according to the head of public service Mr Joseph Kinyua.The state says that this move will help increase efficiency, resolve overlapping laps and utilize resources well to achieve economies of scale.The financial institutions include the Uwezo Fund, Youth Fund, Women Enterprise Fund, the Kenya Industrial Estates, Development Bank of Kenya and Industrial development Bank of Kenya.According to Mr Kinyua, the Government has established an inter-agency taskforce to review the legal regulatory and institutional framework to make the merger and transition.The head of public service on Tuesday sent a circular to the respective agency boards informing them of the decision in preparation for implementation.The circular instructed the agencies to put on hold plans of Restructuring, recruitment of new staff or filling any board vacancy during this interim period."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,” the circular noted.
The circular also freezes agency boards mandate to transfer any staff, acquire, transfer or dispose any assets.The head of public service says that the new agency will be a one stop shop for all loans so as to ensure efficiency in financing youths and SME's.“This move is in line with the parastatal reforms that were recommended by the President’s taskforce on parastatal reforms in 2013,” Mr Kinyua concluded.