President Uhuru Kenyatta has reorganised State logistics agencies, setting up a single entity in part of efforts to improve efficiency and cement Kenya’s status as a regional transport hub.
In an Executive Order on Friday, President Kenyatta directed the establishment of Kenya Transport and Logistics Network that brings on board the Kenya Ports Authority (KPA), Kenya Railways Corporation (KRC), the Kenya Pipeline Company (KPC), and the Industrial and Commercial Development Corporation (ICDC).
ICDC will serve as the holding company to the three agencies.
The move is also intended to boost synergy among the four entities and foster the country’s competitiveness in the areas of trade.
“Going forward, the State agencies have 30 days to enter into a joint operations agreement where each entity will re-organise their structures, resources, operations and services towards establishment of a seamless and coordinated national transport and logistics network,” said President Kenyatta.
Under this framework the boards of the four State corporations will be reconstituted.
“The ongoing transactions of the four agencies shall continue uninterrupted even as the National Treasury re-organises and builds up technical skills necessary towards the full implementation of the objectives of the Framework Agreement,” the President said.
The National Treasury is expected to support ICDC in the reorganisation of its existing portfolio so as to facilitate the effective implementation of the framework agreement.
ICDC will also be responsible for securing the achievement of the commercial vision and objects of the agreement through the Board of Directors of each entity.