Update: Tuesday, September 22: The Law Society of Kenya (LSK) moved to court to challenge Executive Order consolidating KRC, KPC and KPA.
LSK under its President Nelson Havi claimed it was unconstitutional and lacked public participation.
President Uhuru Kenyatta on Friday, August 7, issued an executive order that established a framework for the management, coordination and integration of the public port, railway and pipeline services under the Kenya Transport and Logistics Network (KTLN).
The network comprises of; Kenya Ports Authority (KPA), Kenya Railways Corporation (KRC) and Kenya Pipeline Company Limited (KPC).
In a statement sent to newsrooms, State House spokesperson Kanze Dena stated that the framework would be under the coordination of the Industrial and Commercial Development Corporation (ICDC).
ICDC will act as the holding company to the three agencies as well as 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 30 days that will reorganize individual entity structures, resources, operations and services.
"The reorganization will help to establish a seamless and coordinated national transport and logistics network," reads the statement.
Further, the new structure is expected to lead to the lowering of the cost of doing business in the country through the provision of port, rail and pipeline infrastructure in a cost effective and efficient manner, and within acceptable shared benchmark standards.
In addition, the network will allow for centralisation of operations and would not cause disruption to the legal structuring of the etate entities.
The three state agencies have since been transferred to the National Treasury.
The National Treasury has been tasked to strengthen its internal capacity by securing the necessary technical skills and competencies needed to effectively oversee investment portfolio management, and the setting up, monitoring and reporting of the financial performance of commercial state corporations.
Due to the reforms, the proposed merger of the ICDC into the Kenya Development Bank has been postponed.
However, ongoing transactions involving KPC, KRC and KPA will proceed uninterrupted.
