Mergers a good deal, says Treasury CS Ukur Yatani
Wednesday, September 9th, 2020
- KPC board Chair Rita Okuthe said the executive order has placed the entities at par in generation of income for the country and lower the cost of services. Intention is to make Kenya logistics hub in Africa to give Tanzania and other competitors a run of their Money.
National Treasury Cabinet Secretary Ukur Yatani yesterday refuted claims that ongoing merger of government agencies, under the Kenya Transport and logistics network (KTLN), is meant to disadvantage a certain region.
Yatani’s sentiments follow claims that an executive order merging the operations of the Kenya Ports Authority (KPA), Kenya Railways Corporation (KRC) and the Kenya Pipeline Corporation (KPC) would hurt some people.
Speaking while presiding over the signing of the network’s framework deal at the Kenya Ports Authority, Yatani said no jobs will be lost following the merger after civil society groups termed the move a regional economic sabotage.
“There is nothing like that, instead more opportunities will be created because the merger has now created efficiency, competitiveness and low cost of operation,” said Yattani.
In the new deal, agencies will enjoy seamless transport network through Kenya Railways, uninterrupted source of energy to power the cog of industrial development, financial base support from good will of treasury as well as skilled workforce to professionally manage relevant sectors.
Yatani also hinted that the numerical machining complex which has been providing engineering services to Kenya Railways has been structured to play a vital role in providing engineering services to the three agencies.
In 60 days, the agencies will enter into a service agreement that will see harmonisation of policies.
“It’s about competitiveness, efficiency and to reduce cost of the northern corridor the new deal will facilitate harnessing of synergies of the entities in order to bring logistics costs down and enhance Kenya’s competitiveness in the East and Central Africa region,” he added.
It is now official that the new outfit will manage the Kenya Ports Authority, Kenya Pipeline Corporation and Kenya Railways under the Industrial and Commercial Development Corporation (ICDC) after the agency’s board chairs adopted the agreements on Tuesday.