By Billy Mijungu
Kenya is at a crossroads, grappling with economic challenges that demand bold leadership and decisive action. As Treasury Secretary, John Mbadi holds the power—and the responsibility—to steer the country towards fiscal discipline. This calls for tackling the glaring inefficiencies and waste synonymous with government operations.
A prime example is the wastefulness of parastatals. Out of over 350 parastatals in operation, three-quarters rent office spaces at exorbitant costs. Meanwhile, prime government-owned buildings are leased out to private entities for a fraction of their value. This paradox is a glaring mismanagement of resources. “Why should taxpayers fund inflated rents while government property remains underutilised?” Mbadi must take the lead in directing parastatals to relocate to government-owned buildings or renegotiate their leases to save billions annually. This is not just about economics—it is about fiscal responsibility and fairness.
Another area ripe for reform is healthcare insurance within government agencies. Senior staff and board members of parastatals currently enjoy private medical insurance schemes paid for by the National Treasury. Yet Kenya already has a robust Social Health Insurance Fund (SHIF), or Taifacare, designed to cater to public healthcare needs. “Why maintain parallel systems that only serve to drain public resources?” Mbadi should push for the retirement of all private medical insurance schemes for public officers. Consolidating these funds into SHIF would not only cut costs but also strengthen the national healthcare system, ensuring every Kenyan benefit from improved services.
The inefficiencies do not stop there. Government asset management, particularly in the disposal of movable assets, is a case study of wastefulness. Under the current bureaucratic policies, assets like vehicles and equipment often lose significant value while awaiting approval for disposal. This is a needless haemorrhaging of public funds. Mbadi must spearhead a reform of these policies, introducing an automated, streamlined system for asset acquisition and disposal. Such a move could save the government up to KES 100 billion annually—funds that could be redirected to critical development projects.
These reforms are not merely about cutting costs; they are about instilling a culture of fiscal and monetary responsibility in government. Mbadi’s role as Treasury Secretary places him at the helm of this mission. He must lead by example, demonstrating that fiscal discipline is not just a buzzword but a guiding principle.
To succeed, he will need the full support of the President and the courage to confront entrenched interests resistant to change. The waste in our government is not an accident—it is the product of a culture that prioritises personal gain over public good. Breaking this cycle will require bold action, and Mbadi must rise to the challenge.
Treasury Secretary John Mbadi has the opportunity to be remembered as the architect of Kenya’s financial turnaround. But he must act decisively—relocating parastatals to government buildings, consolidating healthcare funds under SHIF, and overhauling asset management policies. These changes could unlock billions in savings and redirect resources towards transforming lives.
The question now is whether Mbadi has the vision and resolve to make these reforms a reality. The solutions are clear, the benefits immense, and the stakes higher than ever. “It is time for action. Will Mbadi step up?”
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@BillyMijungu
