Treasury CS Yatani formalizes Port and Railway merger

Treasury Cabinet Secretary Ukur Yatani has officiated the merger of Kenya’s ports, pipeline, and the railway corps into the Kenya Transport Logistics Network (KTLN) – By Gerald Gekara.

The merger that was announced by President Uhuru Kenyatta, was signed through an executive order published on 7th August 2020.

The network is meant to 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).

KTLN will leverage the efficiencies, and synergies of the four State agencies to achieve Kenya’s strategic agenda of becoming a regional logistics hub.

Further, the new structure is expected to lead to the lowering of the cost of doing business in the country through the provision of the port, rail and pipeline infrastructure in a cost-effective and efficient manner, and within acceptable shared benchmark standards.

The new framework also allows for the centralization and coordination of operations without amending the existing laws or causing undue disruption to the legal structuring of the State entities. These help to secure comfort with the concept and utilize the experience to guide the development of a more permanent legally structured organization.

Consequently, the four State agencies have been transferred to the National Treasury in line with the recommendations of the Presidential Taskforce on Parastatal Reforms.