This archive report was first published on 7 August 2020.
On August 7, 2020, President Uhuru Kenyatta announced a major overhaul of Kenya's transportation and logistics sector, merging three state agencies to form the Kenya Transport and Logistics Network.
The network comprises Kenya Ports Authority (KPA), Kenya Railways Corporation (KRC), and Kenya Pipeline Company Limited (KPC), which have been transferred to the National Treasury.
According to a statement by State House spokesperson Kanze Dena, the framework will be coordinated by the Industrial and Commercial Development Corporation (ICDC), which will act as the holding company for the three agencies.
ICDC will oversee the management of the state's investments in ports, rail, and pipeline services, as well as reorganize the individual entity structures, resources, operations, and services of the three agencies.
“Going forward, the state agencies are required to enter into a joint operations agreement within 30 days that will reorganize individual entity structures, resources, operations, and services,” Kanze Dena stated.
The reorganization aims to establish a seamless and coordinated national transport and logistics network, reducing the cost of doing business in the country through the provision of port, rail, and pipeline infrastructure in a cost-effective and efficient manner.
However, ongoing transactions involving KPC, KRC, and KPA will proceed uninterrupted, while the proposed merger of ICDC into the Kenya Development Bank has been postponed.
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