State to Merge Six Financial Agencies to Form a Mega Development Bank
TUESDAY JANUARY 16 2018
Kenya Daily Nation
Head of Public Service Joseph Kinyua. He said six government financial institutions would be merged to form a mega development bank. PHOTO | FILE | NATION MEDIA GROUP
In Summary
The state will form the mega development finance institution by merging the Kenya Industrial Estates, Development Bank of Kenya, Industrial Development Bank of Kenya, Uwezo Fund, Youth Enterprise Development Fund and Women Enterprise Development Fund.
By PSCU
The government has started a process to merge six financial organisations to set up one strong financial institution.
Some of the organisations currently run parallel functions and sometimes perform overlapping roles.
MERGER
The move aims to increase efficiency, resolve overlaps and make better use of resources to achieve economies of scale.
The state will form the mega development finance institution by merging 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.
RESTRUCTURING
Mr Joseph Kinyua, the head of Public Service, has issued a circular to the affected agencies informing them of the decisions to be implemented in the interim period.
Mr Kinyua told the agencies to put on hold any restructuring, recruitment of new staff (including CEOs), filling of vacancies in boards and the review of terms of service 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 in his circular.
Transfer of staff to and from the identified agencies has also been frozen. The circular also stopped the disposal, transfer, lease or new acquisition of assets. Where there was an ongoing process of acquisition of property, the affected agencies have been instructed to consult the Head of Public Service.
EFFICIENCY
According to the merger plan, the new agency would 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 youth.
“This move is in line with the parastatal reforms that were recommended by the President’s task force on parastatal reforms in 2013,” said Mr Kinyua.
He added that the move would ensure efficiency in financing youth and SMEs.
Kenya Daily Nation
Head of Public Service Joseph Kinyua. He said six government financial institutions would be merged to form a mega development bank. PHOTO | FILE | NATION MEDIA GROUP
In Summary
The state will form the mega development finance institution by merging the Kenya Industrial Estates, Development Bank of Kenya, Industrial Development Bank of Kenya, Uwezo Fund, Youth Enterprise Development Fund and Women Enterprise Development Fund.
By PSCU
The government has started a process to merge six financial organisations to set up one strong financial institution.
Some of the organisations currently run parallel functions and sometimes perform overlapping roles.
MERGER
The move aims to increase efficiency, resolve overlaps and make better use of resources to achieve economies of scale.
The state will form the mega development finance institution by merging 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.
RESTRUCTURING
Mr Joseph Kinyua, the head of Public Service, has issued a circular to the affected agencies informing them of the decisions to be implemented in the interim period.
Mr Kinyua told the agencies to put on hold any restructuring, recruitment of new staff (including CEOs), filling of vacancies in boards and the review of terms of service 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 in his circular.
Transfer of staff to and from the identified agencies has also been frozen. The circular also stopped the disposal, transfer, lease or new acquisition of assets. Where there was an ongoing process of acquisition of property, the affected agencies have been instructed to consult the Head of Public Service.
EFFICIENCY
According to the merger plan, the new agency would 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 youth.
“This move is in line with the parastatal reforms that were recommended by the President’s task force on parastatal reforms in 2013,” said Mr Kinyua.
He added that the move would ensure efficiency in financing youth and SMEs.
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