President and First Lady warmly received on arrival in Mombasa
Nairobi, August 25, 2008
Thousands of jubilant wananchi today lined up the road to receive President Mwai Kibaki and First Lady Mama Lucy Kibaki who arrived in Mombasa this evening at the start of a 6-day official visit to the Coast.The plane carrying the President and the First Lady touched down at Moi International Airport shortly after 6.00 p.m.They were warmly received at the airport by Coast leaders and other Government officials led by Ministers Chirau Ali Mwakwere, Najib Balala, William Ruto, Amazon Kingi, Assistant Ministers Ramadhan Kajembe, Calist Mwatela and Gonzi Rai, several Members of Parliament from the region and Mombasa Mayor Abubakar Mondhar among others.Thereafter, the President and the First Lady were entertained by groups of traditional dancers and choirs.
KPA to start 24-hour operation on Friday
Written By:Faith Kendi,
Posted: Tue, Aug 19, 2008
Transport minister Ali Chirau Mwakwere has announced that the Kenya ports Authority will begin 24 hours operations from the 22nd of this month.
Mwakwere' announcement follows a directive from the president last week that the port and border entry points should offer 24 hours services seven days a week.
The port of Mombasa has been the center of controversy for the last one year over delays in cargo clearance to issues related to the management of the port.
The troubles became a big concern this month with stakeholders complaining of clearance delays causing huge congestion at the port. To ease the congestion the President has directed the implementation of a 24 hours 7days a week service delivery at the port giving a one-week ultimatum.
The minister now says his ministry is set to implement the directive beginning on the 22nd of this month where KPA will operationalize its services on a 24 hours basis.
He also said his ministry will be strict on trucks that exceed the four axle load saying it is illegal and against EAC trade rules.
Mwakwere was speaking during the launch of the rapid results initiative for the ministry of transport for the year 2008/2009.
++++++++++++++++++
Raila and 6 MPs in row on port boss
By�Mwakera Mwajefa, Citizen Correspondent, Nairobi
August 12, 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 on 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. 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.
STATE HOUSE
*****************
Coast MPs claim marginalisation
Written By:Daniel Waitere,
Posted: Sun, Aug 10, 2008
MPs from the Coast now want the new Kenya Ports Authority Managing director to come from the region saying the Coast region has been marginalized.
The leaders have also defended Transport minister Chirau Mwakwere against criticisms of under performance.
The MPs were at Kadzodzo girls' secondary school in Kaloleni for a fund raising ceremony hosted by area MP Kambi Kazungu. But here regional politics took center stage as the leaders called for a replacement of the Kenya ports authority-managing director within one of their own following the sacking of Abdalla Mwarua.
The MPs also came to the defense of transport minister Ali Mwakwere over criticism that his ministry has under performed saying the minister should be left to manage his ministry. The MPs said the coast region had been given a raw deal in the grand coalition government and rallied their supporters to unite and form a formidable force in readiness for the 2012 general election.
Kaloleni MP Kambi Kazungu and Hassan Joho of Kisauni said they would not recognize the new councilors nominated by deputy Prime Minister Musalia Mudavadi.
*************************
BUSINESS DAILY
RVR turnaround train grapples with take-off
Written by Zeddy Sambu
August 11, 2008: The wagon yard at the Kenya Railways headquarters in Nairobi is full of junk. Two years after the Rift Valley Railways, a private company that took over the running of the railway, many of the wagons have not left the yard. The expected turn-around has taken more time than was expected to start showing results of improved services.
The fate of the managers of the Kenya/Uganda rail will be known when the two governments are expected to take a firm decision to either retain or terminate their contract with the private managers.“We have issued them with a default notice.
We have taken a decision to terminate the contract, if performance does not improve. If they do not do anything to satisfy terms in the concession agreement by October, they will have to go,” Chirau Ali Mwakwere, Kenya’s Transport minister, told Parliament last week.
****************************
RVR given an ultimatum
Written By:PMPS,
Posted: Thu, Aug 07, 2008
Kenyan and Ugandan government officials have given the Rift Valley Railways (RVR) a 90 days notice to put her operations in order. Prime Minister Raila Odinga told a press conference after a five hour meeting to resolve the crisis dogging the regional railway company that the two governments were determined to see rail transport operation resume.
He said the meeting consented to plans by the company to undertake an overhaul of the management team and had recommended a review of some concession terms to instill efficiency in the company.
" We welcome the decision by the company to change the management following the replacement of the RVR chairman and the managing director among other senior officials blamed for the underperformance" he said.
The premier said the company had requested for time claiming that most of the investors who pledged to finance the proposed radical infrastructural improvement had failed them but the company had opted for other options.
Raila said the RVR had assured stakeholders that the management was working on a comprehensive investment plan to be submitted to the committee by the 15th of the month for perusal.
He said the stakeholders also gave the company a time frame between 31st of August to the 31st of October to provide a list of fresh shareholders expected to finance the RVR operations in place of those who failed the transport agency.
The meeting resolved to expunge sections of the concession, which had given the leading shareholder a monopoly to retain 35% of the shares, and announced that the clause should be amended.
Raila said other faulty clause in the concession earmarked for amendments were those prohibited member states or any other company from constructing a parallel railway line.
The Prime Minister made the remarks at his treasury office late Wednesday night after concluding the stakeholders meeting attended by transport minister Chirau Makwere and Finance Assistant Minister Oburu Odinga. Others were Permanent Secretary of represented Ministries and Investors and main shareholders from both countries.
Nairobi, August 25, 2008
Thousands of jubilant wananchi today lined up the road to receive President Mwai Kibaki and First Lady Mama Lucy Kibaki who arrived in Mombasa this evening at the start of a 6-day official visit to the Coast.The plane carrying the President and the First Lady touched down at Moi International Airport shortly after 6.00 p.m.They were warmly received at the airport by Coast leaders and other Government officials led by Ministers Chirau Ali Mwakwere, Najib Balala, William Ruto, Amazon Kingi, Assistant Ministers Ramadhan Kajembe, Calist Mwatela and Gonzi Rai, several Members of Parliament from the region and Mombasa Mayor Abubakar Mondhar among others.Thereafter, the President and the First Lady were entertained by groups of traditional dancers and choirs.
*************************
African aviation safety in spotlight
Posted to the web on: 26 August 2008
AFRICA has a high aviation accident rate proportional to its air traffic, an aviation conference heard yesterday.The Federal Aviation Administration (FAA), the US regulatory body, said “political will” was needed to make African skies safer.Speaking at the 14th Aviation and Allied Business Leadership Conference in Johannesburg yesterday, top FAA official Robert Sturgell urged African leaders to share aviation safety information globally.
Sturgell said the US had asked the International Civil Aviation Organisation (Icao), a United Nations agency, to make the US’s entire aviation audit report public.Icao requires member states to adhere to the universal safety oversight audit, which promotes aviation safety through the regular auditing of safety oversight systems.The US bars all countries that fail to comply with the Icao standards from extending their air services to that country.
Sturgell said Africa had 4,5% of the world’s air traffic, but accounted for 25% of total accidents.Noting that the US was helping some sub-Saharan countries to comply with Icao standards, Sturgell said Africa’s air traffic was growing faster than the global average.“This growth is good news, but we need to make sure that our ability to meet safety standards grows as well,” he said.Transport Minister Jeff Radebe agreed that aviation safety statistics in Africa made “poor reading”.He said accidents related to poor ground handling at the airports were a “concern”. Some airports in Africa were saddled with outdated air traffic and navigation technologies, infrastructure deficiencies and a lack of skills.Radebe said SA was making progress in liberalising the country’s skies.
However, his Kenyan counterpart, Chirau Ali Mwakwere, said there were still some instances where one had to fly to another continent in order to reach another African country.He said African countries were increasingly opening up their air space to airlines from sister countries, even though the pace of this liberalisation “may not be as fast as some people would desire”.“The easing of unnecessary restrictions involving travelling for our citizens across the continent, movement of high-value goods and perishable horticultural products could benefit our people and open up more markets for our products,” he said.African Civil Aviation Commission president Chris Kuto said what African countries needed was a “common civil aviation policy”. He said some policies were not friendly to aviation on the continent.
Christian Folly-Kossi, secretary-general of the African Airlines Association, said the recent European Union-US open sky deal had increased pressure on Africa to create a “single air space” too.
http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A830167
Posted to the web on: 26 August 2008
AFRICA has a high aviation accident rate proportional to its air traffic, an aviation conference heard yesterday.The Federal Aviation Administration (FAA), the US regulatory body, said “political will” was needed to make African skies safer.Speaking at the 14th Aviation and Allied Business Leadership Conference in Johannesburg yesterday, top FAA official Robert Sturgell urged African leaders to share aviation safety information globally.
Sturgell said the US had asked the International Civil Aviation Organisation (Icao), a United Nations agency, to make the US’s entire aviation audit report public.Icao requires member states to adhere to the universal safety oversight audit, which promotes aviation safety through the regular auditing of safety oversight systems.The US bars all countries that fail to comply with the Icao standards from extending their air services to that country.
Sturgell said Africa had 4,5% of the world’s air traffic, but accounted for 25% of total accidents.Noting that the US was helping some sub-Saharan countries to comply with Icao standards, Sturgell said Africa’s air traffic was growing faster than the global average.“This growth is good news, but we need to make sure that our ability to meet safety standards grows as well,” he said.Transport Minister Jeff Radebe agreed that aviation safety statistics in Africa made “poor reading”.He said accidents related to poor ground handling at the airports were a “concern”. Some airports in Africa were saddled with outdated air traffic and navigation technologies, infrastructure deficiencies and a lack of skills.Radebe said SA was making progress in liberalising the country’s skies.
However, his Kenyan counterpart, Chirau Ali Mwakwere, said there were still some instances where one had to fly to another continent in order to reach another African country.He said African countries were increasingly opening up their air space to airlines from sister countries, even though the pace of this liberalisation “may not be as fast as some people would desire”.“The easing of unnecessary restrictions involving travelling for our citizens across the continent, movement of high-value goods and perishable horticultural products could benefit our people and open up more markets for our products,” he said.African Civil Aviation Commission president Chris Kuto said what African countries needed was a “common civil aviation policy”. He said some policies were not friendly to aviation on the continent.
Christian Folly-Kossi, secretary-general of the African Airlines Association, said the recent European Union-US open sky deal had increased pressure on Africa to create a “single air space” too.
http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A830167
KPA to start 24-hour operation on Friday
Written By:Faith Kendi,
Posted: Tue, Aug 19, 2008
Transport minister Ali Chirau Mwakwere has announced that the Kenya ports Authority will begin 24 hours operations from the 22nd of this month.
Mwakwere' announcement follows a directive from the president last week that the port and border entry points should offer 24 hours services seven days a week.
The port of Mombasa has been the center of controversy for the last one year over delays in cargo clearance to issues related to the management of the port.
The troubles became a big concern this month with stakeholders complaining of clearance delays causing huge congestion at the port. To ease the congestion the President has directed the implementation of a 24 hours 7days a week service delivery at the port giving a one-week ultimatum.
The minister now says his ministry is set to implement the directive beginning on the 22nd of this month where KPA will operationalize its services on a 24 hours basis.
He also said his ministry will be strict on trucks that exceed the four axle load saying it is illegal and against EAC trade rules.
Mwakwere was speaking during the launch of the rapid results initiative for the ministry of transport for the year 2008/2009.
++++++++++++++++++
Raila and 6 MPs in row on port boss
By�Mwakera Mwajefa, Citizen Correspondent, Nairobi
August 12, 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 on 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. 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.
******************
STATE HOUSE
Nairobi, August 11, 2008
President Kibaki announces measures to speed up cargo movement
President Mwai Kibaki has today directed the implementation of a 24hrs 7 day week service delivery at the port of Mombasa and border entry points at Lunga Lunga, Taveta, Namanga, Isabenia and Malaba. All the relevant government organs have one week to fully implement the directive.
The President has further directed that unnecessary police road blocks that delay the free movement of goods be done away with while trucks with four axle loads will not be allowed on Kenyan roads.
The President made the announcement after meeting ministers and permanent secretaries in the various ministries of trade, finance, security, immigration, transport and roads at his Harambee House office.
The meeting reviewed the steps that must be urgently taken to speed up movement of goods along the vital Northern Corridor transport system and other entry points around the country. The government has further directed that,
- There will be speeding up of the process at weighing bridges. Vehicles will be weighed only at source but only in regard to enclosed cargo which must have seals for easy recognition by officials from the ministry of roads and the police.
- To protect the country’s roads, there will be a ban on trucks having the four axle-load and modalities of implementing this direction will be announced.
- Police check-points must be reduced to a minimum for security reasons and should be done on an ad-hoc basis.
- The clearance of cargo at the port of Mombasa should be reduced from 48 hours to a maximum of 24 ours.
- The Kenya Ports Authority and Kenya Revenue Authority should immediately harmonize their laws and regulations in regard to cargo clearance.
- KPA should be responsible for collection of demurrage on cargo delayed at the port until the cargo is out of the port.
- That on cargo which is removed out of the port without payment for demurrage, KRA should collect the demurrage charges on behalf of KPA.
Today’s meeting was attended by the Deputy Prime Minister and Trade Minister Uhuru Kenyatta, Internal Security and Provincial Administration Minister Professor George Saitoti, Immigration Minister Oteino Kajwang, Transport Minister Chirau Ali Mwakere, acting Finance Minister John Michuki, Roads assistant Minister Dr. Wilfred Machage, the Permanent secretaries in the relevant ministries and officials from the Kenya Revenue Authority and the Police Commissioner Major General Ali.
President Kibaki announces measures to speed up cargo movement
President Mwai Kibaki has today directed the implementation of a 24hrs 7 day week service delivery at the port of Mombasa and border entry points at Lunga Lunga, Taveta, Namanga, Isabenia and Malaba. All the relevant government organs have one week to fully implement the directive.
The President has further directed that unnecessary police road blocks that delay the free movement of goods be done away with while trucks with four axle loads will not be allowed on Kenyan roads.
The President made the announcement after meeting ministers and permanent secretaries in the various ministries of trade, finance, security, immigration, transport and roads at his Harambee House office.
The meeting reviewed the steps that must be urgently taken to speed up movement of goods along the vital Northern Corridor transport system and other entry points around the country. The government has further directed that,
- There will be speeding up of the process at weighing bridges. Vehicles will be weighed only at source but only in regard to enclosed cargo which must have seals for easy recognition by officials from the ministry of roads and the police.
- To protect the country’s roads, there will be a ban on trucks having the four axle-load and modalities of implementing this direction will be announced.
- Police check-points must be reduced to a minimum for security reasons and should be done on an ad-hoc basis.
- The clearance of cargo at the port of Mombasa should be reduced from 48 hours to a maximum of 24 ours.
- The Kenya Ports Authority and Kenya Revenue Authority should immediately harmonize their laws and regulations in regard to cargo clearance.
- KPA should be responsible for collection of demurrage on cargo delayed at the port until the cargo is out of the port.
- That on cargo which is removed out of the port without payment for demurrage, KRA should collect the demurrage charges on behalf of KPA.
Today’s meeting was attended by the Deputy Prime Minister and Trade Minister Uhuru Kenyatta, Internal Security and Provincial Administration Minister Professor George Saitoti, Immigration Minister Oteino Kajwang, Transport Minister Chirau Ali Mwakere, acting Finance Minister John Michuki, Roads assistant Minister Dr. Wilfred Machage, the Permanent secretaries in the relevant ministries and officials from the Kenya Revenue Authority and the Police Commissioner Major General Ali.
*****************
Coast MPs claim marginalisation
Written By:Daniel Waitere,
Posted: Sun, Aug 10, 2008
MPs from the Coast now want the new Kenya Ports Authority Managing director to come from the region saying the Coast region has been marginalized.
The leaders have also defended Transport minister Chirau Mwakwere against criticisms of under performance.
The MPs were at Kadzodzo girls' secondary school in Kaloleni for a fund raising ceremony hosted by area MP Kambi Kazungu. But here regional politics took center stage as the leaders called for a replacement of the Kenya ports authority-managing director within one of their own following the sacking of Abdalla Mwarua.
The MPs also came to the defense of transport minister Ali Mwakwere over criticism that his ministry has under performed saying the minister should be left to manage his ministry. The MPs said the coast region had been given a raw deal in the grand coalition government and rallied their supporters to unite and form a formidable force in readiness for the 2012 general election.
Kaloleni MP Kambi Kazungu and Hassan Joho of Kisauni said they would not recognize the new councilors nominated by deputy Prime Minister Musalia Mudavadi.
*************************
BUSINESS DAILY
RVR turnaround train grapples with take-off
Written by Zeddy Sambu
August 11, 2008: The wagon yard at the Kenya Railways headquarters in Nairobi is full of junk. Two years after the Rift Valley Railways, a private company that took over the running of the railway, many of the wagons have not left the yard. The expected turn-around has taken more time than was expected to start showing results of improved services.
The fate of the managers of the Kenya/Uganda rail will be known when the two governments are expected to take a firm decision to either retain or terminate their contract with the private managers.“We have issued them with a default notice.
We have taken a decision to terminate the contract, if performance does not improve. If they do not do anything to satisfy terms in the concession agreement by October, they will have to go,” Chirau Ali Mwakwere, Kenya’s Transport minister, told Parliament last week.
****************************
RVR given an ultimatum
Written By:PMPS,
Posted: Thu, Aug 07, 2008
Kenyan and Ugandan government officials have given the Rift Valley Railways (RVR) a 90 days notice to put her operations in order. Prime Minister Raila Odinga told a press conference after a five hour meeting to resolve the crisis dogging the regional railway company that the two governments were determined to see rail transport operation resume.
He said the meeting consented to plans by the company to undertake an overhaul of the management team and had recommended a review of some concession terms to instill efficiency in the company.
" We welcome the decision by the company to change the management following the replacement of the RVR chairman and the managing director among other senior officials blamed for the underperformance" he said.
The premier said the company had requested for time claiming that most of the investors who pledged to finance the proposed radical infrastructural improvement had failed them but the company had opted for other options.
Raila said the RVR had assured stakeholders that the management was working on a comprehensive investment plan to be submitted to the committee by the 15th of the month for perusal.
He said the stakeholders also gave the company a time frame between 31st of August to the 31st of October to provide a list of fresh shareholders expected to finance the RVR operations in place of those who failed the transport agency.
The meeting resolved to expunge sections of the concession, which had given the leading shareholder a monopoly to retain 35% of the shares, and announced that the clause should be amended.
Raila said other faulty clause in the concession earmarked for amendments were those prohibited member states or any other company from constructing a parallel railway line.
The Prime Minister made the remarks at his treasury office late Wednesday night after concluding the stakeholders meeting attended by transport minister Chirau Makwere and Finance Assistant Minister Oburu Odinga. Others were Permanent Secretary of represented Ministries and Investors and main shareholders from both countries.
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