CS Yatani leads KPA, Pipeline, Railways into signing cooperation agreement

Treasury Cabinet Secretary Ukur Yatani on Tuesday led three government institutions into signing a an agreement to work together under the Kenya Transport and Logistics Network.

President Uhuru Kenyatta on August 7 established KTLN through an Executive Order Number 5.

The order sees a framework for the management, coordination and integration of public port, railway and pipeline services.

The three companies will now work together under the coordination of Industrial and Commercial Development Corporation (ICDC).

The new framework also allows for the centralisation and coordination of operations without amending the existing laws or causing undue disruption to the legal structuring of the State entities.

In his speech, Yatani said the agreement is aimed at setting up a collaboration on areas of policy, financial, operation and decision collaboration.

"Reports that this agreement is aimed at bailing out some institutions is far from the truth. Last year, a significant amount of our budget funding came from these institutions," said Yatani.

He said the agreement will improve cost of doing business and increase efficiency.

KPA chair General (Rtd) Joseph Kibwana, KPC chair Rita Okuthe, Kenya Railways chair Major General (Rtd) Pastor Awita and ICDC chair John Ngumi signed the agreement on behalf of their organisations.

They will now report to the National Treasury.