A Framework Agreement that will create an arrangement for anchoring and integrating the Kenya’s ports, rail and pipeline services within the Kenya Transport and Logistics Network(KTLN) has been signed.
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).
Kenya hopes that the new framework will boost efficiency and lower the cost of doing business in the country.
“We expect that through this new integrated and seamless approach of operational integration, the country will reap the benefits of created synergies through increased efficiency, lower cost of doing business and hence competitiveness of our products and services, and generally higher returns on the infrastructural investment,” said Ukur Yatani Cabinet Secretary, Treasury.
The Agreement sets out the scope of the collaboration, with the broad areas being policy, financial,
operational, transactional and decisional collaboration. Each of these broad areas are further broken down into detailed and more specific targets to give more clarity and focus.
Some of the other key aspects therein include funding of the integrated operations, and the upgrading of and new capital investment. While recognizing that significant funds will be required to achieve the commercial vision, objectives and benefits of the Agreement, the allocation of financial resources of the parties will be aligned to achieve greater value for the common good and achievement of the objectives of the network.
In the new arrangement, 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 move is part of the Report of The Presidential Taskforce on Parastatal Reforms that was adopted in 2013. One of the key focus of the report was the reforms of the commercial state enterprises (state owned enterprises) to make them work for the general good of the country and its people by supporting the economic agenda, that will transform the country into a newly industrializing, middle-income country providing a high quality of life to all its citizens.