The Cabinet has approved the revised guidelines on the terms and conditions of service for board members and staff of State Corporations.
These guidelines, the Cabinet said, were in line with the recent directives given by President William Ruto on fiscal consolidation and management of State Corporations.
The new policy also aligns the determination of the terms and conditions of service in the agencies with the provisions of the Constitution and the relevant laws.
Consequently, the revised guidelines will provide salary bands and allowances for CEOs, board members, Vice-Chancellors, Chancellors and members of university councils.
President Ruto chaired the Cabinet meeting on Tuesday at State House Nairobi.
Additionally, the Salaries and Remunerations Commission and the State Corporations Advisory Committee will be key players in determining the terms and conditions for State corporations.
The guidelines also provide a new standard for the governance and ethical behaviour of board members and staff of State corporations.
The Cabinet was briefed on the ongoing industrial action by healthcare workers. The members were informed that 19 issues were in contention, but only four concerned the National Government - basic salary arrears, scholarships for postgraduate studies, medical insurance and stipends for medical interns.
All the issues have been resolved save for the stipend of interns. The Cabinet was adamant that it is unsustainable to continue paying KSh206,000 a month to the interns.
The Cabinet endorsed the government directive to set the internship stipend at KSh70,000, saying other interns in public service are paid KSh25,000.
The Cabinet was also briefed on fertiliser distribution. The members were informed that fertiliser has been distributed in 42 counties, with uptake going up by 100 per cent.
So far, 2.9 million bags have been distributed to 538,061 farmers compared to 1.09 million bags to 270,000 farmers in April last year.
Farmers registered on the fertiliser online portal have hit 5.9 million compared to 2.3 million last year. In addition, 9.5 million e-vouchers.
On suppliers of sub-standard fertiliser, President Ruto directed those tough measures be taken against "anyone who adulterates an important national programme".
Members of Cabinet also approved the terms of a negotiated settlement of the commercial contracts and financing agreements for Itare and Arror dams.
The matters that the contractor, CMC de Ravenna, had taken for arbitration have since been withdrawn. Consequently, the government and CMC de Ravenna will enter into a court settlement.
In the new terms, Itare Dam will be completed, while the construction of Arror Dam will begin.
The Cabinet also approved the purchase of six parcels of totalling 11,000 acres of land in Naivasha, including 6,000 acres for settling squatters and 5,000 acres for industrial purposes.
The Cabinet also discussed and approved the following:
Kenya's Ratification of the Treaty Establishing IGAD
Kenya's Ratification of the WTO Agreement on Fisheries Subsidies
Hosting of Eastern Africa Sub-Regional Forum on Artificial Intelligence
Provision of an Office for the African Economic Research Consortium
Preparation for the 59th Labour Day Celebrations
Progress on the Implementation of the 15 Billion Tree-Growing Programme
