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{
    "id": 1590951,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1590951/?format=api",
    "text_counter": 166,
    "type": "speech",
    "speaker_name": "Hon. John Mbadi",
    "speaker_title": "The Cabinet Secretary for the National Treasury and Economic Planning",
    "speaker": null,
    "content": "Second, the Salaries and Remuneration Commission (SRC) sustainably continues to reduce the number of allowances in public service through a phased approach aimed at streamlining allowances to improve transparency, accountability, equity, and fairness thereby, ensuring the total compensation bill is affordable and fiscally sustainable. To this end, the SRC will progressively, review allowances and benefits in future collective bargaining agreements to align allowances to policy guidelines for public service. Allow me turn to reforms of state corporations. State Corporations are a major source of fiscal risks to public finances due to management and operational inefficiencies. An assessment by The National Treasury to determine viability of State Corporations identified critical gaps and vulnerabilities. To address the vulnerabilities, in January 2025, the Cabinet approved reforms to streamline State Corporations and enhance their governance and accountability. The reforms target to address operational and financial inefficiencies, enhance service delivery, and reduce State Corporations’ overreliance on exchequer support. The approved reforms include the following: First, merger of 42 State Corporations into 20 entities to improve operational efficiency and eliminate redundancy as some have duplicating and or overlapping mandates. Second, dissolution of 25 State Corporations and their functions transferred back to their parent ministries or other State Corporations. Third, restructuring six State Corporations to align their mandates for improved performance. Fourth, declassification of four public funds currently categorised as State Corporations and transferring their functions back to the relevant ministries. Fifth, declassification of 13 professional bodies currently categorised as State Corporations to private entities with no exchequer budget. In order to enhance the operational efficiency, improve governance and ownership of State Corporations, the Government developed the Government-Owned Enterprises Bill, 2024. The Bill is part of broader efforts by the Government to streamline public enterprises, reduce fiscal risks, and enhance service delivery to citizens. The Bill is currently, before this august House for consideration. I urge Honourable Members to favourably consider the Bill to enable its enactment. In order to secure the uptake of cotton production while also providing alternative lint supplies for local apparel manufacturers, the Cabinet approved the revival and commercialisation of Rivatex East Africa Limited by onboarding non-equity strategic partners. On sugar sector reforms, H.E. the President re-affirmed his commitment, during this year’s Madaraka Day celebrations, to ensure the prompt payment of sugarcane farmers. The Government has also taken practical steps to deliver its promise to modernise the mills and transform these once-struggling factories into productive, sustainable enterprises. Currently, four state-owned sugar factories: Chemelil Sugar Company, Muhoroni Sugar Company, Nzoia Sugar Company and South Nyanza Sugar Company (SONY) have been placed under competitive leasing arrangements. This initiative is expected to enhance efficiency, restore profitability and protect the livelihoods of farmers. Let me now turn to pending bills. The Government remains committed to resolving the long-standing issue of pending bills, as part of the broader efforts to strengthen public financial management and restore confidence in Government processes. In this respect, the Pending Bills Verification Committee that was appointed in September 2023 is currently, finalising its report for submission by end of this month. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}