President Uhuru Kenyatta on Friday issued an executive order establishing the Kenya Transport and Logistics Network (KTLN). KTLN will be tasked with managing, coordinating, and integrating operations of public ports, railway, and pipeline services.
Consequently, this will see the network comprise of Kenya Ports Authority, Kenya Railway Corporation (KRC), and Kenya Pipeline Company Limited (KPC) under the coordination of the Industrial Commercial Development Corporation (ICDC). ICDC will act as a holding company to the three agencies and be the custodian of government investments in ports, rails, and pipeline services.
The move is motivated by Kenya’s quest to be a regional logistic hub as the network will leverage the efficiencies of the four state agencies. The government hopes that the new network will lower the cost of doing business in Kenya through a one-stop-shop offering rail, port, and pipeline infrastructure.
In a statement, Kenyatta added that the four state agencies have already been transferred to the National Treasury. The agencies are expected to enter into a joint operations agreement within 30 days from the date of issuance of the executive order.
The latest directive will see the suspension of the proposed merger of the ICDC into the Kenya Development bank.