The Central Bank of Kenya. [Photo/Daily Nation]
The Government has started a process to set up one strong financial institution that will merge functions of several organisations that currently run parallel and sometimes perform overlapping roles.
The move is aimed at increasing efficiency, resolving overlaps and better utilise resources to achieve economies of scale.
The 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.
In order to make the merger and transition seamless, the Government established an inter-agency task force to review the legal regulatory and institutional framework involved in the process.
The task force has already issued interim orders while it completes its work.
The Head of Public Service Joseph Kinyua has issued a circular to the affected agencies informing them of the decisions to be implemented in the interim period.
Mr 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,” said the Head of Public in his circular.
The Head of Public Service added that the move is going to ensure there is efficiency in the financing of youth and SMEs.