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Cabinet approves revised guidelines for State Corporations

President William Ruto during the 10th Inter-Governmental Summit held at State House Nairobi.

In a recent development, the Cabinet has given its seal of approval to the updated guidelines concerning the terms and conditions of service for board members and staff of State Corporations.

The decision, announced following a meeting chaired by President William Ruto at State House Nairobi, underscores the government’s commitment to fiscal consolidation and effective management within State Corporations, aligning with directives issued by President Ruto.

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The revised guidelines aim to harmonize the determination of terms and conditions of service within these entities with constitutional provisions and pertinent laws.

Notably, the policy introduces structured salary bands and allowances for various positions including CEOs, board members, Vice-Chancellors, Chancellors, and members of university councils.

Key stakeholders such as the Salaries and Remunerations Commission and the State Corporations Advisory Committee will play pivotal roles in shaping the terms and conditions for State corporations, ensuring compliance and fairness.

Furthermore, the updated guidelines set forth a new standard for governance and ethical conduct expected from board members and staff of State corporations, underscoring the government’s commitment to transparency and accountability.

In another significant Cabinet decision, the ongoing industrial action by healthcare workers was addressed.

While most issues have been resolved, a point of contention remains regarding the stipend for medical interns.

The Cabinet deemed it unsustainable to maintain the current stipend rate of Ksh 206,000 per month and endorsed a reduction to Ksh 70,000, citing parity with other interns in the public service who receive Ksh 25,000.

The Cabinet also received updates on fertiliser distribution, noting a substantial increase in uptake compared to the previous year.

Additionally, President Ruto emphasized stringent measures against suppliers of sub-standard fertiliser, reaffirming the government’s commitment to safeguarding national programmes.

Furthermore, the Cabinet greenlit the terms of a negotiated settlement for commercial contracts and financing agreements related to Itare and Arror dams.

The resolution paves the way for the completion of Itare Dam and the commencement of construction for Arror Dam.

Other decisions approved by the Cabinet include land acquisition in Naivasha for settlement of squatters and industrial purposes, as well as Kenya’s ratification of the Treaty Establishing IGAD and the WTO Agreement on Fisheries Subsidies.

Additionally, the government will host the Eastern Africa Sub-Regional Forum on Artificial Intelligence and provide an office for the African Economic Research Consortium.

Preparation for the upcoming 59th Labour Day Celebrations and progress on the Implementation of the 15 Billion Tree-Growing Programme were also discussed and endorsed.

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