The Institute of Economic Affairs has recommended a freeze on creation of new parastatals and a probe on existing ones in order to free up funds for development. The Institute has noted that more parastatals are still being created, with majority politically influenced, to create employment for family and friends. President Uhuru Kenyatta created a parastatal reform taskforce on July 23, 2015, to spearhead reforms in state corporations, in a bid to curb wastage of public funds and enhance productivity. The taskforce recommended the reduction of state corporations from 262 to 187 at an estimated cost of Sh600 million. “What we realised from the budget is about 20 per cent of the national government budget goes as transfers to parastatals.

Source: The Star April 13, 2017 20:26 UTC