President Uhuru Kenyatta (pictured) on Friday issued an Executive Order establishing the Kenya Transport and Logistics Network (KTLN).
The KTLN streamlines the management, coordination and integration of public port, railway and pipeline services.
The network brings together Kenya Ports Authority (KPA), Kenya Railways Corporation (KRC) and Kenya Pipeline Company Limited (KPC) under the coordination of the Industrial and Commercial Development Corporation (ICDC).
State House spokesperson Kanze Dena added that the new structure will lead to the lowering of the cost of doing business through the provision of port, rail and pipeline infrastructure.
The new framework allows for the centralisation and coordination of operations without amending the existing laws.
"Consequently, the four state agencies have been transferred to the National Treasury in line with the recommendations of the Presidential Taskforce on Parastatal Reforms," the statement added.
In the new arrangement, the ICDC will act as a holding company to the three agencies, and be responsible for the management of the state's investments in ports, rail and pipeline services.
Going forward, the State agencies are required to enter into a joint operations agreement within 30 days that will reorganise individual entity structures, resources and services.
"The reorganisation will help to establish a seamless and coordinated national transport and logistics network."
In order to secure his vision for the Sector, Uhuru also reorganised the Boards of Directors of the four state entities.
The ICDC Board will be responsible for securing the achievement of the commercial vision and objectives of KTLN, through the Board of Directors of each entity to operate as a single coherent unit.
Further, the National Treasury has been tasked to strengthen its internal capacity by securing the necessary technical skills and competencies to effectively oversee investment management, and the setting up, monitoring and reporting of the financial performance of commercial state corporations.
"In view of the above reforms, the proposed merger of the ICDC into the Kenya Development Bank has been postponed. However, ongoing transactions involving KPC, KRC and KPA will proceed uninterrupted."