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Government considers merger of Regulatory Authorities to enhance efficiency

MOMBASA, Kenya, Apr 11 – In a bid to streamline operations, the government is contemplating the merger of several Regulatory Authorities and Agencies (RAAs) in the country.

Prime Cabinet Secretary Musalia Mudavadi said this move comes in response to the observed overlapping of roles among these bodies, leading to resource wastage and bureaucratic hurdles.

Currently, Kenya’s regulatory landscape comprises a staggering 78 state corporations functioning as RAAs, said Mudavadi.

Mudavadi said it was evident that Kenya needs a more proactive and forward-thinking approach to address this challenge and explore practical solutions for streamlining its regulatory framework.

“It is necessary to be blunt and address the elephant in the room; regulatory overlaps and duplication. This is a real problem for which we must find a solution,” he said.

He said in addition to the complexities posed by varying regulations at the county level, enterprises across Kenya are confronted with a maze of conditions, requirements, fees, charges, and levies imposed by multiple government agencies and regulatory bodies.

“This may require tough decisions to be taken to give effect to the merging of certain regulators,” he said.

He was speaking in Mombasa on Thursday with regulatory authorities and agencies at the Kenya School of Government. The meeting was convened by Chief of Staff and Head of Public Service Felix Koskei.

Mudavadi also said the maintenance of support and governance structures for these entities incurs substantial costs, often burdening the treasury.

“This financial strain can inadvertently lead regulatory bodies to prioritize revenue-generating activities over their primary mandate of regulatory oversight,” said Mudavadi.

He added, “Instead of focusing on safeguarding citizens and ensuring effective sectoral regulation, they may become overly preoccupied with collecting licensing fees and income-earning projects such as real estate ventures.”

Mudavadi said in the manufacturing sector, the Kenya Bureau of Standards (KEBS), the National Environment Management Authority (NEMA), and the Departments of Weights and Measures all assert their authority over aspects such as labelling and inspection.

“This overlapping mandate often leads to confusion and inefficiencies for businesses striving to comply with regulatory requirements,” he said.

Head of Public Service Koskei emphasized the pivotal role of regulatory authorities in delivering efficient government services.

He urged these bodies to align their operations with legal mandates to ensure fairness, transparency, and accountability in service delivery.

Also present during the meeting was Mombasa Governor Abdulswamad Nassir, who emphasized the importance of involving county governments in regulatory roles, particularly in matters of planning and infrastructure development.

He highlighted the need for collaboration between national and county governments to avoid costly oversights and ensure effective utilization of resources.

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