President Uhuru Kenyatta has integrated port, railway and pipeline services under the Kenya Transport and Logistics Network through an Executive Order.
In a statement by State House on Friday, August 7, Spokesperson Kanze Dena said the network brings together Kenya Ports Authority, Kenya Railways Corporation and Kenya Pipeline Company Limited 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.
Consequently, the four State agencies have been transferred to the National Treasury in line with the recommendations of the Presidential Taskforce on Parastatal Reforms.
The move is seen to consolidate cargo transport to the SGR, which has caused uproar in the coast and among truckers.
In the new arrangement, the ICDC will act as a holding company to the three agencies, and be responsible for the management of the State’s investments in Ports, Rail and Pipeline services.
The agencies are required to enter into a joint operations agreement within 30 days.
This will reorganise their respective structures, resources, operations and services.
To facilitate this, Uhuru has reorganised the Boards of Directors of the four 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 to operate as a coherent unit.
“For this reason, the Board of ICDC is exempted from the requirements of Mwongozo on multiple directorships.
Consequently, the proposed merger of the ICDC into the Kenya Development Bank has been postponed but ongoing transactions involving KPC, KRC and KPA remain uninterrupted.