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Delayed Merger of state agencies fuels anxiety
Youths playing e-games at Mt Kenya University stand during the Skill Up Africa event at Kenyatta International Convention Centre on July 16, 2025
The stalling of a plan by the government to merge state corporations has triggered anxiety among staff in the education sector, sapped morale and disrupted operations in key institutions.
The Cabinet approved the mergers months ago, but the delay has left the agencies in limbo as they cannot recruit staff or implement policies. It has also cast a shadow of uncertainty over job security and the future of these institutions.
On January 21, the Cabinet approved the plan to consolidate 42 state corporations into 20 entities, in addition to 25 being dissolved, with their functions transferred to parent ministries or other organisations.
The goal is to improve efficiency, eliminate and align public service with the country’s evolving development priorities, the Cabinet said.
It includes the merger of the Universities Fund (UF) with the Higher Education Loans Board (Helb), and the amalgamation of the Technical and Vocational Education and Training Authority (TVETA), the Commission for University Education (CUE), and the Kenya National Qualifications Authority (KNQA).
Despite the directive by the Cabinet, implementation has not begun, leading to frustration.
Employees are operating under a moratorium issued by Secretary to the Cabinet Mercy Wanjau on January 21, which freezes changes to organisational structure, salary scale or initiation of capital projects in the target institutions.
Compounding the uncertainty, a May 25 circular from Head of Public Service Felix Koskei suspended the renewal of contracts for officers serving in these agencies.
“We are operating at 60 per cent of our approved staff establishment, which has hampered our ability to deliver on our mandate,” UF Acting Chief Executive Edwin Wanyonyi told lawmakers.
He added that the looming merger with Helb has delayed human resource interventions like recruitment and salary restructuring, while also weakening the agency’s ability to implement policies effectively.
Dr Wanyonyi told the National Assembly Committee on Education that despite continuous engagement with the Ministry of Education and the National Treasury, the reforms have not gained momentum.
“We request your intervention to speed up the merger or facilitate the approval of HR instruments to safeguard our capacity,” he said during an inspection visit by the committee at UF offices.
A similar script plays out at TVETA, the regulatory authority for technical and vocational education and training.
“The uncertainty surrounding our existence as an autonomous agency has led to speculation and low morale,” TVETA Acting Director-General Timothy Nyongesa told the National Assembly Committee on Education chaired by Tinderet MP Julius Melly.
“Allow TVETA to exist as an independent entity. It addresses a unique sector that requires unique and customised interventions.”
The merger of TVETA, CUE and KNQA is expected to lead to a consolidated post-secondary education quality assurance agency, the Cabinet said.
Dr Nyongesa said the merger could compromise the specialised and distinct regulatory needs of TVET.
“Merging us with university and qualifications agencies risks diluting our focus. The merger must be carefully considered and not rushed,” he said.
The National Treasury Cabinet Secretary is expected to spearhead the implementation of the reforms. However, the inaction has made staff anxious, especially those whose contracts are expiring, or for institutions struggling to attract and retain talent.
