Kenya Railways, Ports Authority Moved From Transport Ministry

  • Transport CS James Macharia (second left) sanitises his hands while preparing to board a train on Monday, December 7, 2020.
    Transport CS James Macharia (second left) sanitises his hands while preparing to board a train on Monday, December 7, 2020.
  • The National Treasury will take over Kenya Railways Corporation (KRC), Kenya Pipeline Corporation (KPC), and Kenya Ports Authority (KPA) as part of the government restructuring plan in order to create a seamless transport network.

    This means that other than handling the financial duties of the government, Treasury CS Ukur Yatani will now take charge of billions poured into the transport sector.

    Treasury's budget will grow to Ksh167.8 billion in the new financial year beginning July 2021. This will be an increase of Ksh49.6 billion from the initial Ksh118.2 billion.

    Kenya Ports Authority (KPA)
    Kenya Ports Authority (KPA)

    Yatani affirmed that the new development would ultimately ease the cost of doing business within the country by providing transport services in a cost-effective manner.

    "In addition, the network will allow for centralisation of operations and would not cause disruption to the legal structuring of the state entities. The three entities have since been transferred to the National Treasury.

    "The department 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," he stated.

    According to the 2021/22 financial budget, Ksh32.4 billion will be poured into the railway sector for rehabilitation services.

    For years, the three agencies have been under the control of the Transport Ministry. This has seen the government pour billions into the sector in an aim to spur economic growth within the country.

    From projects such as Standard Gauge Railway (SGR), Nairobi Expressway, and major superhighways across the country, the Transport Ministry has confirmed its aim of reducing traffic within major cities and provide alternatives for Kenyans for ease of travel.

    Recently, Kenya has been part of historic deals within the transport sector in order to facilitate trade with the neighbouring countries.

    The Ksh5 billion deal between Uganda and China Roads and Bridge Corporation (CRBC) will link Kampala to Kenya's SGR and boost regional trade. 

    Further, a Ksh100 billion deal was signed between President Uhuru Kenyatta and Tanzanian President Samia Suluhu for the construction of a gas pipeline from Dar es Salaam to Mombasa.

    From left: Presidents Samia Suluhu (Tanzania) and Uhuru Kenyatta (Kenya) at the Kenya-Tanzania Business Forum at Serena Hotel in Nairobi on Wednesday, May 5, 2021