KENYA TIMES

Mwakwere assures Govt won’t revoke concession

Story by: George Kebasso
Updated on: Wednesday, August 20, 2008

THE Government has ruled out the possibility of cancelling the concessioning of the Kenya-Uganda railway to Rift Valley Railways (RVR).But Transport minister Chirau Ali Mwakwere has acknowledged that there is need to evaluate RVR’s performance to ensure it meets the concession agreement.The minister said this yesterday during the launch of his ministry’s Rapid Results Initiative at a ceremony held the Cooperative College of Kenya in Nairobi’s Karen suburb.

He said there are clauses in the concession agreement that specify remedial steps in the event a party fails to meet its part of the bargain and which should be adhered to.Said he: “We know there is a big problem but that does not mean that nothing can be done. We must support RVR’s operations if it has to stay afloat in the industry.”

He said cancelling the concession agreement is not the Government’s priority, but the governments of Kenya and Uganda would look into the teething problems that hamper operations of the rail transport operator, adding that solving the problems will make the rail transport efficient.“As countries in the region we have to accept that we made mistakes and acknowledge that there is a serious problem with RVR. We need to put our eyes on RVR to fix the problem,” he said.

The minister assured that the two governments would move to rescue the company from its current problems, noting: “We have been in touch with the stakeholders involved to ensure that the correction is done. We want to ensure an efficient Rail system in the region for all to reap its benefits.” The Ugandan government has in the past two months accused RVR of failing to honour the concession, with Ugandan Works and Transport minister accusing RVR of poor performance.

John Nasasira admitted that even lay people knew long ago the company was not performing to expectations. He warned that unless the firm improved “substantially in the near future,” the Government would be compelled to apply the options available.The company has breached several important provisions of the concession agreement, including those pertaining to payment of confessional fees and maintenance of conceded assets. The quality of service is said to have deteriorated since RVR took over from Kenya Railways.

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KPA saga: Is it a Raila, Mwakwere showdown or walk

Story by: Abdillahi Alawy
Updated on: Sunday, August 17, 2008

There is a silver lining in the latest commotion between the Coast MPs and Prime Minister Raila Odinga. It is possible that this is a win-win situation for both sides of the debate. Unfortunately, it is obvious that the warring parties have not seen the opportunities in their argument and are increasingly bent on politicizing the issue. Apparently, a segment of the region’s MPs appears united against the PM’s recent directives that have affected the Ministry of Transport.But more loudly, the MPs are complaining about what they see as Raila’s micro-managing of a ministry headed by a Coastal.

Clearly, the Transport Minister, Hon. Chirau Ali Mwakwere, has twice become the victim of the PM’s imposing vigor in highly visible national and international appearances. The pro-Mwakwere MPs rightly complain that Raila Odinga is purposely overshadowing the Matuga MP. To the extent, the newly crowned Premier has stolen Mwakere’s limelight from Washington DC to the slippery decks of the Kenya Ports Authority (KPA); a key institution that falls under Mwakwere’s Transport Ministry.The open-air agreement between the US and Kenya, and the recent KPA saga are examples in point.

In these events Mr. Mwakwere diplomatically allowed Mr. Odinga to patronize and subsequently steal the instant blitz. I witnessed it in Washington DC and I just read about the KPA. Mwakwere has been a Transport Minister longer than Odinga has been a Prime Minister. However, according to the still-unclear pecking-order and the PM’s undefined oversight roles, the PM seemingly appears to be making all the important decisions under Mwakwere’s docket.For example, there has not been even a word from the Prime Minister on any of those many ministries that don’t have a fax number posted on the Internet; or well-defined ministerial roles clarified on the web.Additionally, an observation is due here that Raila’s involvement in the Lands Ministry is complimentary and supportive of the ministry and its minister. But, his constant intervention in the Transport Ministry is looking more like interference than nurturing.

The current debate centres on whether or not the top KPA post should be reserved for Coastal natives. The Mwakwere’s cohorts are peddling the idea that KPA should be led by a Mijikenda.Note the clarification here: not any Coastal but a Mijikenda for the post at KPA; because that has been the past trend. Surprisingly, MP Danson Mungatana does not see that all the Coastal people who have previously held the KPA job were exclusively from the Mijikendas group; pre and post Mwakwere. It is beside the point here, but the names of previous Coastal KPA bosses are, Mturi, Mkalla, Mumba, Mwaruwa etc. Mungatana is a non-Mijikenda, but this time, for some reasons, he is ready to sing along with the Mijikenda leader, Mr. Mwakwere.The four names listed above and the current KPA boss all come from one tribal group, albeit a family that has primarily occupied the Transport Minister’s as his defined agenda of promoting the Coastal people— also noting that this is in line with the national leadership process of awarding key jobs to the close-ones. Raila is right to state that the KPA post should be a nationwide competitive position to be filled by the most qualified Kenyan. The MPs are also right to insist that a Mijikenda should be heading the KPA.

More importantly Mwakwere is right in that he is being pushed around by a Prime Minister who has an overzealous addiction to Mwakwere’s performance at Transport. Raila is right in that Kenya should not have public positions that are reserved for a certain group of people. Mwakwere should be supported for refusing to be micromanaged or upstaged in roles that are clearly his. Likewise, the Coast MPs are right in standing with their colleague but also highlighting a Coastal dilemma of long-term isolation that may be addressed via clear affirmative processes. aalawy@gmail.com
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Raila cracks the whip

Story by: Lumiti Khabuchi &
Kipng’eno Cheruiyot



HEADS ROLL: KPA boss Mwaruwa fired as PM warns non-performers


PRIME Minister Raila Odinga has put on notice non-performing public officials. He particularly took issue with the transport sector, saying it has deteriorated to unacceptable levels and directed that concerted efforts be made to turn it around. And in what was seen as a thinly veiled attack on Transport Minister Chirau Ali Mwakwere, the Prime Minister expressed exasperation over the collapse of rules that had streamlined and brought sanity to the public transport sector under former holder of the docket John Michuki.
The government, said Raila, will no longer tolerate public officers and departments whose inefficiency constitute an impediment to doing business and general growth and development of the country.The PM accused non-performing officials of frustrating the work of the private sector aimed at spurring development.
And as a warning to non-performing executives of state corporations, Raila announced the replacement of Kenya Port Authority managing director Abdallah Mwaruwa with James Mulewa who has been the manager in charge of reforms at the port.Raila said while the government had entrusted the realisation of the Vision 2030 in the hands of the private sector, its role as the regulator of business activities had fallen short of expectation and therefore the need for a paradigm shift.
He was speaking during the launch of the first ever government/ private sector round table at which players in the private sector highlighted key bottlenecks towards doing business in the country.The drawbacks that range from a harsh taxation regime to massive corruption among public officials, insecurity and infrastructure challenges that have made doing business costly and stood in the way of new investments in the country.
Raila said with the formation of the grand coalition government, manifestos of coalition partners were harmonized and structured towards the realization of the revised Vision 2030 . He said only close coordination between the government and the private sector could make the ambitious vision a reality."Our immediate goal of achieving a ten percent rate of growth will not be reached if conduct business as usual. That level of growth can only be provided by a revitalized private sector working in fullest cooperation with the government," said the PM.
The event brought together senior government officials among them the two deputy prime ministers Musalia Mudavadi of Local government and Uhuru Kenyatta of Trade. Also present were cabinet misters, assistant minister, permanent secretaries, senior government officials and over 70 executives from the private sector.Raila reiterated the commitment towards the realization of a 24-hour economy as a way of generating resource..
Reacting to a complain of unnecessary red tape and bureaucracy in acquisition of licenses, the prime minister said the government was working towards an overhaul of the existing licensing regime with a view of realizing a one stop licensing centre. The private sector had decried the slow nature of licensing offices in the country, sometimes multiplicity of particular licenses, corruption and the rebirth of licenses that were recently scrapped further heightening the cost of doing business.
Energy was cited as the greatest hurdle in doing business in the country. This in part has to do with its insufficiency and high costs that have been occasioned by the fluctuation in the world oil prices. Towards this end, the private sector called for the exploration of diverse and non traditional sources such as bio-fuels and thermal, wind and solar generated power."But we must not build only small plants of 50 megawatts each, when there are huge economies of scale that larger plants could provide. Indeed we will shortly undertake a feasibility study to determine whether the generation of nuclear power is a viable option for us," said Raila.
In the recent months, the country’s transport sector has reeled under criticism over failure to address serious challenges ranging from unnecessary delays caused by roadblocks, which in most case are used as extortion points on major highways and piling up of containers at the port of Mombasa. The poor state of roads for long stretches and Rift Valley Railways has also been unable to move goods further frustrating trade within the country and in the region.
It is the attendant outcry from the regional economies over delayed supplies that must have prompted the axing of top most port and rail management officials. On Monday, the government announced the replacement of the managing director of the cash strapped Rift Valley Railways (RVR) Mr. Roy Puffet.
There is a planned meeting to In addition, the Jomo Kenyatta International Airport (JKIA) will be expanded towards Athi River to boost capacity in an ambitious plan between the government and the Japanese government. The two partners have given Sh5 billion and sh15 billion respectively towards the project.
The PM said the coalition government would create a seamless relationship between public and private sectors to ensure they play a complementary role towards the realization of the vision targets.The Prime minister said the government is ready for the ICT revolution with the expected completion of the fibre optic cable that will connect Kenya with the United Arab Emirates and the world to bridge the digital divide currently existing on the continent.
Uhuru said his ministry is in the process of implementing the first ever private sector development strategy that will make country an investment hub through reduction of business costs. The National Business Agenda launched by Raila yesterday is summed up in an eleven-point manual dubbed ‘realizing the potential of the private sector in Kenya’ read on their behalf by the Kenya Private Sector Alliance (KEPSA) CEO Betty Maina.