President William Ruto’s administration plans to merge three key financial regulatory bodies – the Capital Markets Authority (CMA), the Insurance Regulatory Authority (IRA), and the Saccos Societies Regulatory Authority (SASRA) – aiming to enhance service delivery, streamline operations, and prevent redundancy.

According to Prime Cabinet Secretary Musalia Mudavadi, consolidating the functions of these bodies would improve their overall impact, streamline regulatory processes, and promote a more efficient regulatory environment conducive to economic growth.

“Tough decisions will have to be taken to give effect to the merging of certain regulators. Consolidating their functions under a unified framework would undoubtedly enhance their collective impact and streamline regulatory processes,” Mudavadi said in a statement dated April 11.

Kenya’s cabinet in 2017 approved a draft law to merge four finance regulators including the body responsible for pension funds, but the plan fell through.

Reforming state-owned agencies — including regulatory bodies — is a key pillar of Kenya’s $4.4 billion International Monetary Fund-backed loan program, which seeks to address the nation’s debt vulnerabilities.

The merger will extend to other sectors beyond finance, potentially involving entities such as the Kenya Bureau of Standards (KEBS), the National Environment Management Authority (NEMA), and the Department of Weights and Measures, indicating a broader strategy to enhance regulatory capacity across industries.