State asks four agencies to share resources as merger takes shape

The establishment of Kenya Transport Logistics Network (KTLN) will not lead to any job losses in the four-state agencies that will operate under its framework, National Treasury Cabinet Secretary Ukur Yattani has assured.

Yatani said the arrangement will benefit Kenyans through improved business efficiency, reduced cost of transport, and also lower cost of business transactions.

He further said the coordination envisaged by the new structure will reduce the time for the transportation of goods and make operations of the Kenya Ports Authority (KPA), Kenya Railways Corporation(KRC), the Kenya Pipeline Company(KPC), and the Industrial and Commercial Development Corporation that fall under KTLN, more effective and efficient.

The CS said that all the involved entities are financially stable and denied reports the new structure seeks to bail out ailing parastatals.

Yattani spoke on Tuesday when he presided at the signing of a framework agreement for KTLN at the KPA headquarters in Mombasa by board chairpersons, Joseph Kibwana of KPA, Pastor Awitta (KRC), and Rita Okuthe (KPC).

John Ngumi who is chairman of the ICDC and KTLN also signed the agreement that formalises collaboration among government agencies.

The formation of KTLN is as a result of an executive order number five issued by President Uhuru Kenyatta on August 7 this year.

''I want to emphasise and assure all concerned stakeholders that the creation of this network will not lead to any job losses -on the contrary, we focus more benefits for our people through improved business, reduction of time for transporting goods and generally enhanced efficiencies,'' Yattani said.

The CS said that the existing mandates of the individual agencies will remain unchanged and that they will operate under the acts of parliament that established them.

He urged them to share resources and synergies that they have for the benefit of all Kenyans.

''This is not an imposed marriage but a collaboration to achieve both competitiveness and efficiency,'' he said.

President Uhuru Kenyatta last month issued an Executive Order establishing the Kenya Transport and Logistics Network (KTLN).

The KTLN streamlines the management, coordination, and integration of public port, railway, and pipeline services.
The new structure will lead to the lowering of the cost of doing business through the provision of port, rail, and pipeline infrastructure.

The new framework allows for the centralisation and coordination of operations without amending the existing laws.
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.

Going forward, the State agencies are required to enter into a joint operations agreement within that will reorganise individual entity structures, resources, and services.

"The reorganisation will help to establish a seamless and coordinated national transport and logistics network."

In order to secure his vision for the Sector, Uhuru also reorganised the Boards of Directors of the four-state 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 single coherent unit.

Further, the National Treasury has been tasked to strengthen its internal capacity by securing the necessary technical skills and competencies to effectively oversee investment management, and the setting up, monitoring, and reporting of the financial performance of commercial state corporations.