President William Ruto has announced radical measures to enforce tough austerity measures in government.
The measures have claimed the existence of 47 state corporations.
President Ruto said the parastatals with overlapping mandates will cease to exist immediately.
"The 47 state corporations with overlapping will be dissolved and their mandate transferred to ministries and state agencies," he said.
Ruto announced the decision on Friday during the State of the Nation address at State House, Nairobi.
The parastatals have been cited as loss-making while gobbling up billions of taxpayers' money.
Thousands of civil servants could lose their jobs under this government trajectory to wind up the state agencies.
The National Treasury had established a High-Level Fiscal Risk Committee tasked with evaluating and reporting on fiscal risks originating from state corporations, agencies and government authorities (SAGAs).
The committee recommended that some state corporations be merged while others should be scrapped.
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