The recent formation of Kenya Transport and Logistics Network (KTLN), bringing the Industrial and Commercial Development Corporation (ICDC), Kenya Ports Authority, Kenya Pipeline Corporation and the Kenya Railway Corporation, under which the meter gauge railway and the Standard Gauge railway falls is a welcome move. If it is managed well, it has the ability to make the country competitive in terms of oil pipelines, in the wake of new discoveries of oil in the north and neighbouring countries.
The move will lead to increased utilization of the railways and seaports and enhanced business opportunities which creates more jobs for our people, and in the process make locals see the importance of developing the connected infrastructure to the ports, which also provides an opportunity to develop far flung marginalized areas. It will enable us to leverage our unique geographical location and maintain our competitive edge.
The formation of KTLN should be seen in the light of the much required parastatal reforms as per the parastatal reforms report of 2013, which highlighted the need to merge some state owned entities to make them more viable. We can use our parastatals to generate more revenue for government, in addition to fulfilling specific missions, objectives and purpose, alongside meeting Key Performance Indicators (KPI’s), which has emerged as a yardstick for state entities performance review.
These indicators have the ability to lead to enhanced provision of public services, good societal outcomes, increased utilization of local resources, talents, innovation, creation of jobs, high contribution to GDP and strategic investments including adoption of Public Private Partnerships (PPPs).
State entities are influential growth sources and are vital for future economic freedoms of a country, hence the reason why such entities have grown from 9% in 2005 to 23% in 2014 as reflected in their presence in the Fortune Global 500, with more such firms being of Chinese origin.
Dr. Daniel Mutegi Giti 