President Uhuru Kenyatta on Friday issued an Executive Order establishing a framework for the management, coordination and integration of public port, railway and pipeline services under the Kenya Transport and Logistics Network (KTLN).
The network brings together Kenya Ports Authority (KPA), Kenya Railways Corporation (KRC) and Kenya Pipeline Company Limited (KPC) under the coordination of the Industrial and Commercial Development Corporation (ICDC).
KTLN is expected to 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.
According to a statement sent from State House Nairobi, 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 also allows for the centralization and coordination of operations without amending the existing laws or causing undue disruption to the legal structuring of the State entities. This helps to secure comfort with the concept, and utilize the experience to guide the development of a more permanent legally structured organization.
Consequently, the four State agencies have been transferred to the National Treasury in line with the recommendations of the Presidential Taskforce on Parastatal Reforms.
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.