NAIROBI, Kenya, Aug 7-President Uhuru Kenyatta has 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).
A statement by Statehouse’s spokesperson Kanze Dena on Friday revealed that 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.
At the same time, the new body is mandated to ensure the affordability in using port, rail and pipeline infrastructure services.
Additionally, the President has reorganized the Boards of Directors of the four State entities transferring them to the National Treasury in line with the recommendations of the Presidential Taskforce on Parastatal Reforms.
“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 Board of ICDC is exempted from the requirements of Mwongozo on multiple directorships,” read part of the statement.
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.
However, the proposed merger of the ICDC into the Kenya Development Bank has been postponed but the ongoing transactions involving KPC, KRC and KPA will proceed uninterrupted.