Fast track parastatal reforms including revival of public universities

The President, the Prime Cabinet Secretary and the government has outlined measures to revive the economy through implementation of austerity measures through many interventions, including the reduction of the number of parastatals and also requiring that such entities justify their existence by showing the value they bring to Kenyans. There are several reasons to support the plans on parastatal reforms. One, the government started the parastatal reforms in 2013 by commissioning the parastatal reforms report, which highlighted the need to merge some state-owned entities to make them more viable economically and functionally, because many are a burden to the tax payer, which should not be the case. Secondly, most of the parastatals have duplicating functions or are not living up to their mandates/functions. This leads to mismanagement, misappropriation of funds and too much emphasis on ancillary services while sacrificing their core mandate. Thirdly, many parastatals and universities have not keenly followed good corporate governance, forward thinking leadership and embracing the Key Performance Indicators (KPI’s) model, which increases the ability to effectively offer public services and good societal outcomes, like innovation, creation of jobs and high contribution to GDP. Fourthly, parastatals and universities should be at the forefront of utilizing locally available resources, including finances and talents through strategic investments including adoption of Public Private Partnerships (PPPs).

Fifth, countries like China derive lots of funds that they loan to us through the well good performing Chinese state-owned entities that contributes up to 60 percent of the country’s GDP, in addition, these entities contribute up 70 percent of innovation, up to 80 percent urban employment opportunities and up to 90 percent to creation of new jobs. This shows that the parastatals and universities are influential growth sources, and hence are vital for future economic freedoms of any country. Universities must use six major ways through these reforms to be effective: First is devising ways of increasing student enrolment by leveraging on technology and social media; secondly, is increasing and expanding their programmes portfolio, including launching new ones; Thirdly, is commercializing research and getting more research funds locally and internationally. Fourth, is investing in new business ventures. Fifth, is tapping into the auxiliary revenue generating activities that includes income generating activities focusing on students and other population around students. Sixth is increased use of philanthropy and charity Dr. Mutegi Giti, Urban management, Public Private Partnerships (PPPs) & Environment Specialist. mutegigiti@gmail.com, @danielgiti.