NATION MEDIA HOUSE

BUSINESS DAILY

Global campaign targets safety on Kenyan roads

August 28, 2008: The International Road Assessment Programme is being carried out in the country to ensure safety.The IRAP is part of a reforms process in the transport sector that is meant to address the various issues contributing to the large number of road accidents in the country.Last year the Transport ministry, Roads ministry, Automobile Association of Kenya, the Kenya Roads Board and IRAP, signed a memorandum of understanding to facilitate the implementation of this project.

IRAP is an international programme that started in 2006 to develop tools to help low and middle income countries address the issue of road safety and the economic returns of having safer roads.Safety awarenessTransport minister Chirau Mwakwere said his ministry is committed to continue playing its policy role in matters related to the management of the transport industry, especially road safety.This financial year the ministry has planned to undertake intensive multimedia road safety awareness campaigns targeting all road users.Once the study is complete the report is expected to be handed over to the ministry of transport, in April, to implement it.A steering committee is already in place, mainly made up of ministry officials and IRAP, to oversee the study.Missing from the steering committee is the private sector, a major player in the industry.

None of the individual players, matatu sector or even Kenya Private Sector Alliance (KEPSA) is represented in the initiative with the ministry planning to lead the whole initiative.This report will not be the first addressing issues of road safety in the country. Various national plans and the ‘Michuki rules’ are examples of initiatives that have been put in place to reduce road deaths .Speed governorsToday the rules, which called for wearing of safety belts and speed governors, are being broken with Mr Mwakwere stating it was not his job to ensure that they are followed, but the work of the police.

The IRAP will undertake the study in the country, looking at road inspection data supported by aggregate national statistics for total road deaths to find out how many casualties are recorded on the roads.Statistics from IRAP show that 1.2 million people die and a further 50 million are injured or permanently disabled in road crashes globally.Road Safety involves implementation of policies, project funding, recognition of multi sector ownership, road design, vehicles education and road user education. Similar programmes have been carried out or are under way in Singapore, Vietnam, Costa Rica, Chile, Argentina, Peru, South Africa, Nigeria and Serbia.

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KPA to auction 8,000 unclaimed containers
Written by Jim Onyango

August 22, 2008: The Kenya Ports Authority (KPA) will auction more than 8,000 containers that are yet to be cleared from the port of Mombasa. Transport minister Chirau Mwakwere said they were causing congestion.The containers have not been removed from the port’s grounds even after KPA defrayed storage charges for those held for non clearance of import charges or port fees, Mr Mwakwere said.The containers holding an assortment of goods will be sold publicly to defray storage charges. “We have on three occasions invited owners to collect their cargo free of charge. The containers are still there.

We have to do something,” Mr Mwakwere told a meeting of port users in Nairobi yesterday. The law allows KPA to auction uncollected cargo. The port has started a 24-hour shift to help decongest the port. The move has increased average deliveries from 400 containers to 700 containers. The minister said the port’s problems were as a result of poor planning in the 70s. “Don’t blame port managers, they are just at the receiving end.

It’s policy makers in former governments who failed the port by not planning ahead,” said Mr Mwakwere. “Expansion of the port should have been carried out 20 years ago.”The minister said the government would build a world class port in Lamu since the Port of Mombasa could only accommodate one docking ship at a time thereby causing traffic congestion at sea. He said expansion of the port had started after Parliament approved a sessional paper in which Treasury sought the authority of the House to guarantee a Sh16.8billion loan for KPA.

The loan is being advanced by Japan Bank for International Cooperation (JBIC). The money will be used to expand the port to enable it handle two million containers annually, from the current 600,000, and position it as a regional hub.

International business

KPA acting managing director James Mulewa said construction of a three-phase second container terminal at the port was key to expanding the port further to accommodate international business.Shippers have complained of delays in being allocated berths for docking thereby delaying off-loading of cargo. Mr Mwakwere said the port was not able to attract major businesses because of congestion. Cargo owners have in the past complained of loss or tampering with containers due to rudimentary ways of cargo handling. KPA intends to use Sh23 billion to build a new container terminal near Kipevu Oil Terminal — about one kilometre from the present container facility. In the June budget, Treasury allocated Sh430million for starting the expansion project.

The first phase will be ready in five years while the final phase will end in 2015.KPA intends to expand the port to international standards by establishing three new deep water berths to allow bigger ships to dock. Mr Mulewa told users that the port’s harbour would be dredged to an average depth of 15 metres, while the turning basin will be widened to reduce dwell time in handling cargo and bring port operations in line with international standards.
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Keep off port, MPs tell Raila

By MWAKERA MWAJEFA
Posted Sunday, August 10 2008

Six Coast MPs have told Prime Minister Raila Odinga to keep off the affairs of the Transport Ministry and the Kenya Ports Authority.
The MPs said the port should be managed by a person from the Coast.
However, Mr Odinga Sunday dismissed them, saying they were practising cheap politics. “KPA should be run by a qualified person and we should not think of such a post as belonging to a Giriama, Digo or Luo,” Mr Odinga said.

According to him, national posts in the government or parastatals should be given to professionals irrespective of their tribal affiliations.

Home-coming party

He spoke at the home-coming party of Changamwe MP Ramadhan Kajembe.
At the weekend, the Coast MPs had claimed that Mr Odinga was meddling in the running of the ports authority and should leave the concerned minister, Mr Chirau Mwakwere, to make decisions affecting both the ministry and the Mombasa port.

KPA has been rocked by a controversy after its managing director was sent on leave ahead of his retirement.
Speaking during a harambee in Kaloleni District, four MPs accused Mr Odinga of undermining Mr Mwakwere and portraying him as a non-performer.
Those who criticised the PM were Mr Danson Mungatana (Garsen, Narc Kenya), Mr Gideon Mung’aro (Malindi, ODM), Mr Hassan Joho (Kisauni, ODM) and Mr Samuel Kazungu (Kaloleni, PNU).
Those who supported them during a funds-drive at Kadzonzo Girls Secondary School were assistant minister Gonzi Rai (Ford People), Mr Mwalimu Mwahima (Likoni, ODM).

Said Mr Mungatana, the assistant minister for Health: “Let the PM respect ministers from Coast region.” He said that on three occasions, Mr Odinga had portrayed Mr Mwakwere as a non-performer.
“The minister was overlooked when signing a transport deal in the US recently; when dealing with the Rift Valley Railways debacle and when making changes at KPA,” Mr Mungatana said. He said the role Mr Mwakwere played in these matters was not acknowledged.
While accompanying the Prime Minister on a tour of the US earlier in the year, Mr Mwakwere signed an open skies agreement with US officials. Mr Odinga witnessed the deal.

Improve performance

Last week, Mr Odinga convened a meeting of key stakeholders to discuss how to improve the performance of Rift Valley Railways, which has a concession to manage the railway network in Kenya and Uganda. The company was given three months to put its act together.
On Tuesday, Mr Odinga announced changes at the port that saw the exit of Mr Abdalla Mwaruwa as the managing director of KPA. He was replaced by Mr James Mlewa in an acting capacity, a move that led to the protests by the Coast MPs.

At the weekend, Mr Mung’aro warned that MPs from the Coast would lead a demonstration to protest if an “outsider” was picked to run the port of Mombasa. He said: “The politics of yesteryears when we accepted managing directors from elsewhere to run KPA are long gone.”
His Kaloleni counterpart, Mr Kazungu, also asked Mr Odinga to let Mr Mwakwere do his work in the Transport Ministry. “The PM interfering in a ministry led by a Coastal is like he has no respect for Coast legislators,” he said.
Mr Kazungu said Mr Mlewa should be confirmed immediately. “When it is an MD from Coast Province, he is given two days and then sacked, but when it is somebody from elsewhere they serve for up to 20 years in the same position,” he said.

Tour the port

Earlier, Mr Mwakwere and East African Community minister Jeffa Kingi, held talks with the four MPs at the Royal Court Hotel for about one hour before the MPs attended the harambee. It was not immediately clear what they discussed. The Prime Minister is expected to tour the Mombasa port Monday morning. Mr Odinga, who is in Mombasa for a three-day visit, Sunday described the MPs’ calls as “siasa ya pesa nane” (petty politics) saying Kenyans should rise above tribal or regional politics. However, he promised to consult with the leaders over the issue and other matters affecting the region before making the final decision.
On Monday, Mr Odinga is scheduled to receive a briefing from KPA officials on the future of the port, according to a statement from the PM’s office.

Mr Odinga will then be taken on a brief tour of the container terminal before visiting the Customs Scanning Room. In the afternoon, he will visit the Kenya Pipeline oil terminal and the Grain Bulk Handlers Limited.

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States crack whip over Railways deal





Story by JOSEPH BONYO and SAMWEL KUMBA
Posted Wednesday, August 6 2008 at 22:24


The troubled Rift Valley Railways has seven days to submit a comprehensive investment plan and a further 90 days to inject Sh2.8 billion to salvage the concession.In a meeting held on Wednesday, the Kenya and Uganda governments also scrapped the 35 per cent shareholding previously enjoyed by RVR in the deal

Prime Minister Raila Odinga, who chaired the meeting attended by representatives of the RVR consortium, noted that the situation had caused economic damage to the two governments.“The two governments are concerned about the affairs at RVR.

The concession is not working as expected and is a great threat to our economies,” said Mr Odinga.Situation unacceptable“This kind of situation is unacceptable and a solution must be found immediately if the concession is to be salvaged,” added Mr Odinga.Among the conditions set for RVR is that they have up to August 15 to present an investment plan to both governments.

Shareholders of the firm will also have to inject not less than Sh2.8 billion ($40 million) as fresh capital into its operations. “If these resolutions do not work within the stipulated time frame, then the two governments will be forced to review the concession,” added the PM The Rift Valley Railways in 2006 won a 25-year concession to run both countries’ railways after it agreed to share 11.1 per cent of its profits. Sheltam Ltd of South Africa is the largest shareholder of RVR, owning 35 per cent of the shares. Others are the Transcentury Group, Prime Fuels and Mirambo Ltd, Centum Investment Company Ltd and Babcock and Brown.

Revamp operations

However, the deal has been fraught with controversy and delays attributed to RVR for not fulfilling its obligations. RVR was supposed to revamp operations of the railways on a loan of Sh4.48 billion ($64 million) from two international financiers, IFC and KfW.However, due to unsatisfying level of operations, the two financiers had threatened to withdraw their lending support. But it emerged on Wednesday that things have changed. “KfW and IFC have committed to review their position and advance their remaining batch in due course,” explained Mr Odinga.The consortium was required to pay a Sh210 million ($3 million) entry fee and invest a minimum Sh630 million ($6 million) annually and increase traffic by 75 per cent in the first five years.


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Puffet replaced at Rift Valley Railways

By JEVANS NYABIAGE
August 4 2008 at 18:35

Troubled Rift Valley Railways on Monday replaced its managing director and created an executive position under a new management structure in what is seen as a move to shore up its dwindling fortunes.
RVR, the Kenya-Uganda Railways concessionaire currently being accused by the Kenya and Uganda governments for not meeting its contractual targets, replaced its managing director Roy Puffett with Kevin Whiteway, an Australian, and appointed Brown Ondego the executive chairman, a newly created position.
Announcing the changes, RVR Directors Steering Committee chairman Ngugi Kiuna could not hide the significance of the new management structure and subsequent appointment of Mr Ondego, who as Kenya Ports Authority MD, is credited for transforming the once moribund state parastatal to a profit making entity.
“The creation of an executive chairman slot and the subsequent appointment is geared at ensuring that we continue to enhance our management capacity to facilitate a speedy turnaround of the Kenya-Uganda Railways,” Mr Kiuna said.

In his new capacity, Mr Ondego will also take up the role of the principal spokesperson of the company in all undertakings and external communications. Mr Kiuna admitted that the company, which Kenya’s Transport minister Ali Mwakwere recently said has a month to deliver or have its contract terminated, is undergoing serious financial problems. He said the first step to rescue the situation, change of management was necessary.
He said: “All the existing shareholders have agreed to inject more money into the investment and we will also be inviting more investors. We are confident that the new management will facilitate the speedy turnaround of the business towards improved performance and service delivery to RVR customers.”
Once the firm raises the funds through various forms including a rights issue, they will enhance the railway line and procure new locomotives as well as the repair of existing ones.

Mr Kiuna said despite the move will not affect the shareholding of the company. “All the 35 per cent shareholding of RVR is not changing. What the committee is doing is looking for strategic partners to inject capital into the business,” Mr Kiuna said. The chairman said the immediate task will be to tackle issues of concession compliance, raise RVR’S public image and possible funding options.
Prior to his appointment and following his retirement at KPA, Mr Ondego has been serving as the group MD, MJ Group- a company dealing in cargo handling in sea ports.

Amongst the group’s subsidiaries include Grain Bulk Handling, Mbaraki Bulk Terminal Ltd and African Gas Company Ltd. Mr Puffett downplayed his departure, attributing it to a reshuffle of top management by the parent company, Sheltam of South Africa. “I would have wanted to stay here for even four or five years but the decision has already been made,” he said. RVR, the holder of the 25-year concession to operate the lines in Kenya and part of Uganda, is a consortium led by Sheltam of South Africa, with partners Babcock and Brown of Australia, the TransCentury Group, and Centum. However, the Kenya Railways is the manager of the concession and non-conceded assets. It is mandated to plan and develop the metropolitan rail network and that of the inland waterways and Railways Training Institute.

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KPA workers row heads back to court

Written by Githua Kihara

August 4, 2008:

The dispute between dock workers and Kenya Ports Authority management over a new working schedule appears headed to court for the third time despite intervention by the government that helped end a nine day go-slow. Transport minister Chirau Ali Mwakwere on Thursday ordered that port operations return to the five-day working week with those on duty during weekends being paid overtime.


The system had been in place until the start of last month when the port adopted a seven-day working schedule based on a shift system that effectively denied the workers overtime pay. The Industrial Court had allowed port management to introduce the system. But after encountering resistance from the Dock workers Union, KPA unilaterally imposed the system on July 1. KPA has been grappling with a huge salary budget arising partly from paying workers at two times the hourly rate on weekends.

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August, 1, 2008

In another poll petition, a Cabinet minister has been ordered to file his application seeking more documents from his challenger. Mr Chirau Mwakwere was ordered to file and serve the application to the petitioner, Mr Ayub Juma Mwakesi, within seven days. Mr Makwesi was also given another seven days to file his reply.

Court ruling

The main petition is scheduled to be heard between September 22 and 26.
At the same time, the appeal filed by the minister will be heard on October 15 at the Court of Appeal in Nairobi. Mr Mwakwere is challenging the High Court ruling that dismissed his request to have the petition dismissed.

The court had noted that although Mr Mwakwere had not been personally served, the petitioner acted in accordance with the law in trying to serve the petition documents.
When personal service proved to be impossible, he opted to advertise through the media.