Uhuru appoints John Ngumi as first joint chairman of Kenya Pipeline, Railways and KPA

Kenya Pipeline Company chairman John Ngumi/COURTESY

Kenya Pipeline Company chairman John Ngumi has been appointed as the Industrial and Commercial Development Corporation chair.

This means Ngumi will be the first joint chairman of Kenya Pipeline, Kenya Railways and Kenya Ports Authority following President Uhuru Kenyatta’s earlier Executive Order changes.

Uhuru integrated port, railway and pipeline services under the Kenya Transport and Logistics Network.

In a statement by State House on Friday, August 7, Spokesperson Kanze Dena said the network brings together KPA, Kenya Railways Corporation and KPC under the coordination of the Industrial and Commercial Development Corporation.

“KTLN will leverage on the efficiencies and synergies of the four State agencies so as to achieve Kenya’s strategic agenda of becoming a regional logistics hub,” the statement said.

“Further, the new structure is expected to lead to the lowering of the cost of doing business in the country through the provision of port, rail and pipeline infrastructure in a cost effective and efficient manner, and within acceptable shared benchmark standards.”

The new framework will proceed without amending the existing laws or changing the legal structuring of the respective state entities.

The President thus reorganized the Boards of Directors of the four state entities.

The ICDC Board will be responsible for securing the achievement of the commercial vision and objectives of KTLN, through the Board of Directors of each entity so as to operate as a single coherent unit.

For this reason, the ICDC board has been exempted from the requirements of Mwongozo on multiple directorships.

Further, the National Treasury has been tasked to strengthen its internal capacity by securing the necessary technical skills and competencies needed to effectively oversee investment portfolio management.

Following the reforms, the proposed merger of the ICDC into the Kenya Development Bank was postponed. However, ongoing transactions involving KPC, KRC and KPA will proceed uninterrupted.

Rita Achieng Okuthe replaces Ngumi at KPC.

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