President William Ruto has issued a directive calling for the closure of loss-making parastatals, stating that it is time for these entities to be phased out.

Addressing chairs and CEOs of State corporations at State House Nairobi, President Ruto emphasized the need for government-owned enterprises to operate within their means and stop draining the national coffers.

“We cannot continue accumulating debt. Borrowing will only lead us down the cliff,” President Ruto declared, highlighting the urgency of the situation. He further directed state corporations to live within their budgets, reduce wasteful spending, and enhance financial accountability.

In a move to promote fiscal discipline, President Ruto instructed commercial state corporations to remit 80% of their profits to the National Treasury, with regulatory institutions mandated to contribute 90% of their surplus funds.

“We must do what is right. This is the time,” President Ruto asserted, outlining a comprehensive plan to streamline government functions, eliminate duplication, and improve efficiency.