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"id": 205870,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/205870/?format=api",
"text_counter": 148,
"type": "speech",
"speaker_name": "Mr. Mwakwere",
"speaker_title": "The Minister for Transport",
"speaker": {
"id": 189,
"legal_name": "Chirau Ali Mwakwere",
"slug": "chirau-mwakwere"
},
"content": " Mr. Deputy Speaker, Sir, I beg to move that Mr. Speaker do now leave the Chair. Mr. Deputy Speaker, Sir, the Government recognises the pivotal role played by the transport sector in the rapid economic development of our country. The world over, transport is 3644 PARLIAMENTARY DEBATES September 4, 2007 acknowledged as crucial in facilitating both national and international trade and commerce. It is gratifying to note that the country's Strategy for Economic Recovery, Wealth and Employment Creation, whose implementation comes to an end this year, recognises infrastructure, which includes transport, as one of the three main pillars of economic recovery. Consequently, the Government has, for the last four years, invested substantial resources in the transport sector. Indeed, the sector has been one of the high key growth areas in the economy. Its share of the Gross Domestic Product (GDP) contribution in 2006 was 9 per cent. During the current fiscal year, the Ministry will focus on priority areas that will contribute towards the realisation of the Kenyan Vision 2030, which is taking over from the Economic Recovery Strategy (ERS), and whose aim is to transform the economy into a middle income one with a sustained growth rate of 10 per cent for the next 25 years. The transport sector in Kenya encompasses a system comprising of aviation, roads, rail, maritime and inland waterways, motorised and non-motorised means of transport and meteorological services. The mandate of the Ministry of Transport is to formulate and oversee implementation of transport policies, develop appropriate regulatory framework, investigate air accidents, motor vehicle inspection and provision of meteorological services. Mr. Deputy Speaker, Sir, in 2005, the Ministry developed a five-year strategic plan 2005- 2009, which is a valuable planning and management tool that has helped the Ministry to remain focused in playing its role in realising the national goal of economic recovery. The plan defines the business of the Ministry and the key targets for achievements over the planned period. Essentially, the strategic plan will be instrumental in assisting the Ministry accomplish its mission of facilitating accessible transportation services and meteorological information to spur socio- economic growth. This mission draws from the Ministry's vision of developing our country, a world class transportation system and meteorological services for improved quality of life for our people. Mr. Deputy Speaker, Sir, the Ministry performs its mandate through the departments and State corporations under its portfolio. I am glad to inform this august House that since the introduction of performance contracts, the departments and corporations have recorded remarkable improvement in generating profits, honouring tax obligations, paying dividends to Treasury and in delivering social good to our people. Mr. Deputy Speaker, Sir, the Ministry performs the following core functions alongside others in line with its mandate: Transport policy, Kenya Railways Corporation, Kenya Ports Authority, Kenya Ferry Services, Transport Licensing Board, Motor Vehicle Inspection Unit, Registration and Insurance of Motor Vehicles, Kenya Civil Aviation Authority, Kenya Maritime Authority and Kenya Meteorological Department. One of the achievements registered in the area of policy reforms is the recent formulation of the Integrated National Transport Policy. There are a number of policy recommendations in these documents which address the myriad of problems in the transport sector. The proposed policy focuses on the integration of the transport infrastructure and operations. It also advocates private sector participation in developing Kenya's strategic position as a regional transit hub. A Sessional Paper on the document has been developed to facilitate appropriate action by this House. Mr. Deputy Speaker, Sir, other important areas of policy reforms undertaken by the Ministry include the joint concessioning of Kenya-Uganda Railways. After years of decline in the performance of the rail operations, the Government decided to concession freight and passenger services of the Kenya Railways Corporation. On 1st, November, 2006, the Governments of Kenya and Uganda jointly concessioned the Kenya-Uganda Railways to the Rift Valley Railways Company (RVR). This is a private operator. The period of concession is 25 years for freight services and five years for passenger services. This September 4, 2007 PARLIAMENTARY DEBATES 3645 shift in policy is intended to stimulate private sector investments into the current dilapidated rail network and rolling stock. The anticipated improved efficiency in operations will reduce transportation costs in the region thereby making Kenya the preferred transit country into the hinterland of Africa. It will also make Kenyan goods competitive in the regional and global market. Mr. Deputy Speaker, Sir, the Government is very keen on strengthening regional integration, especially with the neighbouring neighbour states. Towards this end, the Ministry has plans to improve a new transport corridor from the Port of Lamu to Ethiopia and Southern Sudan. This undertaking will comprise of a road network, railway line, oil refinery, oil pipeline, Lamu Airport and a free port at Lamu. The project will be implemented on a Build Operate and Transfer concept (BOT). It is estimated to cost between US$10 billion to US$15 billion. It will take six years to complete. A draft framework agreement has been formulated between Kenya and Kuwait investors. It is currently under discussion. Mr. Deputy Speaker, Sir, the Kenya Ports Authority (KPA) plans to develop a free trade zone at the Port of Mombasa through public-private sector partnership arrangement. Mr. Deputy Speaker, Sir, the Kenya Meteorological Department is charged with the responsibility of collecting and disseminating weather and climatic information for safety of life, protection of property, advancement of economic activities and conservation of the natural environment. The global trend is towards the creation of semi-autonomous agencies and the Ministry is considering this status for the Kenya Meteorological Department. The current public transport system is dependent on matatus, buses and railway. It is a system experiencing numerous problems which the Integrated National Transport Policy mentioned earlier elsewhere in this statement, intends to address immediately. However, in order to cope with the increasing demand for an efficient public transport system in the City of Nairobi, the Government intends to introduce a convenient mass transport system in the form of Bus Rapid Transit (BRT) System. It is a system designed to reduce both the prevailing traffic congestion and environmental pollution in the city. A draft concept paper on the proposed BRT has already been prepared. It is currently being scrutinised in sensitisation workshops with the aim of seeking views from key stakeholders. The envisaged project will entail the construction of segregated bus ways and tendered infrastructure. The introduction of a light rail system is also under consideration. Mr. Deputy Speaker, Sir, I am pleased to inform this august House that following extensive consultations between my Ministry and the Treasury and the stakeholders in the aviation industry the Kenya Civil Aviation Authority (KCAA) and the Kenya Airports Authority (KAA) have been allowed to retain the revenues collected in the form of air navigational fees and passenger service charge respectively. This is a major policy shift that will enable these corporations to undertake both their capital and operation programmes in line with their corporate strategic plans and thereby improve their service delivery. Mr. Deputy Speaker, Sir, allow me to express my Ministry's gratitude for the understanding shown by the Treasury on this issue. Mr. Deputy Speaker, Sir, we have ongoing projects and programmes which are worth mentioning. In its efforts to enhance service delivery, the Ministry and State corporations are implementing several projects and programmes. Some of the major ones involving substantial financial resources are: (i) Road safety campaign: These programmes were introduced in the year 2003 and are still going on in the Ministry. The programmes emphasize on multi-media public awareness campaigns and impromptu inspections aimed at evaluating compliance with road safety requirement and enforcement of regulations. This is done through licensing of only those operators who comply with road safety regulations. The programmes have yielded commendable results. They have created employment opportunities in the motor transport industry and several investors have 3646 PARLIAMENTARY DEBATES September 4, 2007 ventured into this industry. Mr. Deputy Speaker, Sir, the programmes have reduced carnage on our roads. Before the road safety campaigns, there used to be 44 fatalities for every 10,000 vehicles. This figure has now been reduced to 30 fatalities for the same number of vehicles even though we have disappointing surges over certain months of the year. The KPA has made substantial investment in the equipment modernization and replacement programme. The programme involves procurement of new marine craft such as tugboats and equipment like ship to shore cranes, rift stokers and fork-lifters. This investment has cost Kshs5 billion and was started in 2003. The programme is aimed at increasing efficiency at the port. The Authority is at an advanced stage of automating most of its cargo clearance operations. This is being done through the e-Port concept introduced in November, 2006. This venture will reduce cargo clearance processes and improve efficiency at the port. Mr. Deputy Speaker, Sir, revenues from marine operations have been dwindling. The major reason for this undesirable development is the by-passing of the Port of Mombasa by large vessels. Only small size vessels are calling at the Port of Mombasa. Large post-Panama vessels cannot access the Port due to its shallowness and narrowness of the entrance point. This is a matter of concern since the Port is gradually evolving into a Feeder Port. Solution to this problem is to deepen the channel to 14.5 metres. The project is expected to cost Kshs4.5 billion. Meanwhile, the Treasury has availed a total of Kshs800 million, since the last financial year, to embark on this project. Mr. Deputy Speaker, Sir, the other ongoing project is the expansion of Mombasa Container Terminal. The Authority is undertaking measures to accommodate the growth in container traffic at the Port. It has re-designed the existing container terminal with a view to increasing its holding capacity. Plans are also under way to construct a new container terminal near Port Reitz. The first phase of this project will commence early 2008 and will be funded by the Japan Bank for International Co-operation (JBIC). Mr. Deputy Speaker, Sir, the other ongoing project is the enhancement of maritime safety and security. The International Maritime Organisation (IMO) has identified Mombasa as a regional centre. Following this recognition in May, 2006, the IMO entered into a joint venture with the Kenya Ports Authority (KPA) and the Kenya Maritime Authority (KMA) and established a research and rescue co-ordination centre for ships and crew in distress at sea. The centre will serve the whole of the East African region. The integrated security improvement programme has also been put in place, and is being implemented at the Port of Mombasa. This programme complies with the International Ships and Port Security (ISPS) code and, therefore, guarantees the safety of our Port. Mr. Deputy Speaker, Sir, the next project within the Ministry, or its parastatals, is the expansion and upgrading of the Jomo Kenyatta International Airport (JKIA). The mandate of managing airports and aerodromes falls under the Kenya Airports Authority (KAA). The country is experiencing phenomenal growth in passenger and cargo traffic. Over the last two years, the traffic has grown by 6 per cent and 15 per cent, respectively. The main thrust of the Authority's current development programme, therefore, is the expansion project at the JKIA, which is intended to improve passenger and freight facilities such as the cargo apron, warehouses, et cetera . The project also includes upgrading of existing terminal facilities. It will cost Kshs9 billion. The KAA will meet 90 per cent of the project cost from its own internally-generated resources, and this is a great compliment to ourselves, as a country. In its efforts aimed at countering terrorist attacks, the KAA will not compromise on the security of our airports. It will continue to invest in modern security and safety equipment and general security surveillance. September 4, 2007 PARLIAMENTARY DEBATES 3647 Other ongoing project in the Ministry is the Flight Safety and Security Project. The core function of the Kenya Civil Aviation Authority (KCAA) is to regulate the civil aviation industry and to provide air-navigation services. In its current efforts of ensuring civil aviation safety and security, this Authority has recorded the following accomplishments. (a) It has successfully carried out calibration of its equipment in line with International Civil Aviation Organisation (ICAO) regulations. (b) The Authority has started implementing the Kenya Airspace Master plan which will re- organise our airspace and enhance air traffic monitoring and control. Mr. Deputy Speaker, Sir, we, however, have challenges and that is why I was mentioning them to the august House to aid decision-making as we discuss the proposed budget. The Ministry is addressing the following challenges with the urgency they deserve. These include the fragmented transport system, low investment in transport infrastructure, and inappropriate institutional framework. We also have challenges in slackened enforcement of rules and regulations, general corporate governance and the area of congestion at our seaports, airports and, sometimes, in other areas. We also have the problem of enhancement of safety and security issues at the seaports and airports. A lot is being done but that remains as a challenge, because it is still a global challenge and we cannot divorce ourselves from that overall global challenge. We have the challenge of reviewing outdated legislation. The activities of the Ministry go far back into the old colonial days, and a lot needs to be changed. A lot has been changed and adjusted to meet some present demands, but a lot more needs to be done and we are systematically working on that in all modes of transport in the country. Mr. Deputy Speaker, Sir, we have a challenge relating to environmental concerns, especially pollution, inadequate technical personnel especially in air-accident investigations, motor vehicle inspection and meteorological services. There is also a challenge in modernisation and replacement of equipment. High on the agenda of these challenges is the replacement of ferries. The Kenya Ferry Services (KFS) is scheduled to procure two new ferries, while consultations are ongoing between the Ministry and the Treasury for funds to rehabilitate the existing ones. The Ministry's budget that is before us here, though inadequate will be utilised prudently in addressing these challenges. The Ministry of Transport has been funded under the Physical Infrastructure Sector in the current 2007/2008 Financial Year. The gross amount obtained for this sector, to finance both Recurrent, Vote R14, and Development, Vote D14, in my Ministry falls under the recurrent sector, which has been allocated Kshs4,600,825,000 and under the development sector, which has been allocated Kshs4,731,676,000. I need not go into the details because they already appear in the Budget booklet which each hon. Member of this august has read and has with him or her here today. Mr. Deputy Speaker, Sir, may I also highlight the general distribution, which will also assist in the discussions, that under General Administration, we have been allocated Kshs1,807,390,000, and the allocation for Information, Communication and Technology Services is Kshs55,110,000. Under the Road Transport generally, we have Kshs167,325,000. The net Recurrent amount of Kshs2,029,825,000 in the current financial year reflects an increase of Kshs355,437,980, or 21 per cent, from the previous financial year's figure of Kshs1,674,387,020. The increased resources in this Vote will enhance grant subventions availed to the KMA, which is a newly-created parastatal, now regulating the maritime industry, and the KFS, which is a social services-oriented State corporation that renders free services to wananchi across Likoni and Mtongwe Channels. But, of course, only pedestrians and cyclists enjoy this free service and not motorists. Both corporations rely on Government resources since their operations are not profit- oriented for the time being. 3648 PARLIAMENTARY DEBATES September 4, 2007 Two, that would enable the Ministry of Transport to set aside Kshs50 million to settle court awards for the victims of the Mtongwe Ferry disaster. Of course, every time a court decision is made, we pay in accordance with the law. But there are still some cases pending in court. So, we have set aside that money so that, whenever a court decides that we pay, we will have funds to pay the dependants of the Mtongwe Ferry disaster without any delay. Three, financial resources for ongoing road safety campaigns: A tribunal has been set up in my Ministry to address complaints from stakeholders in the motor vehicle industry. Four, assist the Ministry to meet its international financial obligations. The Ministry is a contracting party to several conventions which include International Maritime Organization, Transit Transport Co-ordination Authority and the International Civil Aviation Organization."
}