KENYA
changes its ways

Introduction - Reforms - Harsh Times - Economy - Investment - Finance - Stock exchange
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Mr. HON. NOAH KATANA NGALA
former Minister of Public Works and Housing

(present Minister of Home Affairs, Heritage and Sports)

Interview with

Mr KATANA,

Nairobi, June 11th, 1999

The state of infrastructures in Kenya is not the best. Why are there so many deficiencies in the transportation network, particularly the state of the roads?

Kenya is a developing country. One of the important areas to be addressed is the road sector. This sector has a long history, from the days of independence to date. During independence, we did not have an elaborate infrastructure or road network. But as we have continued to progress as a country, we have done certain developments on it. One of the particular areas to focus is the improvement of paved roads. During independence we had about 1,811 km of paved roads. Today we have 8,137 km of paved roads. Therefore, this is a great achievement for our country and we are still progressing by continuing to improve the road network. The earlier roads constructed had a carrying capacity of seven tons. As time has passed, and due to a new generation of vehicles which can pull heavier loads, the roads have been damaged. We are now bringing in place different programs that will create funds for us to be able to repair these roads. In 1994, the Government introduced a road maintenance levy which, we believe, will help rehabilitating and maintaining the roads which are classified in our ministry, to put them in a standard which will be motorable, and that will last longer. In the same spirit, we are trying to observe the axle load limit, which is a very important point. The Government, together with the private sector, have come to a working formula of the best way to protect the roads by controlling the axle loads limit. We believe this is one of the ways that will help Kenya to maintain its road network to last a bit longer.

The private sector referred to here, is the Kenya Transport Association. These are the people who own the vehicles. They have agreed that they now need to be more committed, to ensure that they support the efforts of the Government so that the roads can last a little bit longer, and they do not waste time on bad roads.

What are the immediate plans of your Ministry?

Our first priority is to maintain the existing roads. Our second priority will be the construction of the deteriorated network by ensuring that the road maintenance is brought in place. We will make sure that what we have does not deteriorate further. Thirdly we will try to provide road links to those areas where the absence of roads has brought problems and where movement of goods and service is a bottleneck.

How is the Ministry of Public Works planning on improving and maintaining the state of road infrastructures?

We have a system whereby we get people to participate. Our Ministry has a system of advertising through tenders. It depends on the source of funding. If it is donor funded, the tender has to be internationally advertised so that you get both local and international people to apply. From there the processes take over to determine who is the best applicant. This is a system clearly understood by contractors and consultancy firms, which are also engaged to do the consultancy on a particular road. Then we come up with the tender which is either advertised locally or internationally, so that you get a wider participation.

Is the EU giving any financial support to the necessary projects that have to be implemented?

The European Union has come forward, and they have donated some money for a few roads. They are particularly concerned with the axle limit, because they would like to ensure that when road maintenance is on, the axle limit should be observed, since the biggest damaged is caused when you overlook the axle load. They are supporting the development of the road network this country.
Could you give us a background on the role of Public and Private sectors that fall under this Ministry?

Presently, investment in public roads is done by the Government. However, the Government is looking into the possibility of the private sector investing in roads on a cost-recovery basis. The legal, financial and administrative mechanisms are being worked out. In the meantime all new constructions and periodic maintenance works are carried out by private sector contractors. Most feasibility studies and designs are undertaken by private sector consultants. There are also plans to involve the private sector contractors in routine maintenance of roads, axle loads control and the management of roads through the proposed Roads Board.

You are also the Minister for Housing and there is a shortage of housing in Kenya. Could you tell us what the Government's housing policy is and the future plans?

We have a housing policy which is contained in Paper No. 5 of 1996-97. We have a number of informal settlements, also called slums. These are largely spread out in Kenya. In Nairobi, we have about 55% of the total population living in informal settlements. This situation recurs in many of our urban centers. Over the years, the Government has had the policy of recognizing them as part of the urban house stock. The Government is currently trying to improve these settlements so that they are upgraded to a situation where they will be more habitable.

Another area is the Employer Housing Policies, whereby we encourage both the public and the private sector to provide housing for their employees. Operations of subsidizing housing schemes by employers will be made whenever such an institution can accommodate such subsidies. The Government provided housing to the very low cadre staff and those in frequent transfers. It is more interested in making it possible for people to be able to pay or secure for their own accommodation. Over all, the Government's long term objective is to move towards a situation where every individual lives in a decent, affordable house, whether publicly or privately developed.

Where would you like to see investors coming in?

Prospect areas of interest for investors, foreign or local, are in the construction industry. This area is open. Investment in consultancy and contracting of road construction and maintenance is another area. In the long term, investment in the construction of roads on a cost recovery basis might be opened to foreign investors. I.e., they construct the roads, then they charge a toll and recover their money. This is an area in which the Government is trying to address, but it has not taken root as yet. Toll stations were done away with when the Government introduced the fuel levy.

What is your final message to our readers?

Kenya is a developing country, a peaceful country, a tourist destination and we would like to receive as many tourists as possible, especially from America. Kenya is also a part of the globe and doing the reforms which are now happening all over the world: democratic, economic, business, communications reforms, etc. We are trying to create the enabling environment for those who would like to be investors in Kenya, and for those who would like to visit our country, to be able to have easy access of information, wherever they are. I would plead to people to come and see what Kenya has achieved through the years, since it attained independence 36 years ago. They will see something they will be interested, in one way or another, to invest in. We are inviting American investors to come in big numbers because we believe they have the money and the know-how. All investment procedures in this country have been put in position at the disposal of the investor. We are transparent in our methods, and anybody who would like to participate is welcome.

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© World INvestment NEws, 1999.
This is the electronic edition of the special country report on Kenya published in Forbes Global Magazine.
November 29th 1999 Issue.
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