LSK moves to court to challenge KPA, KRC, KPC move to Treasury’s wings

LSK moves to court to challenge KPA, KRC, KPC move to Treasury’s wings

The Law Society of Kenya (LSK) has moved to court to challenge the government’s decision to consolidate funds and assets of three State infrastructure agencies recently collapsed into a single network via Executive Order No. 5.

The three State firms are the Kenya Railways Corporation (KRC), Kenya Pipeline Corporation (KPC) and the Kenya Port Authority (KPA).

LSK, according to court papers, argued that the Executive Order purporting to integrate the operations of KPA, KRC and KPC was made without any statutory.

Further, the lawyers’ body argued that the framework agreement was signed without public participation contrary to the constitution.

“…the creation of the Kenya Transport and Logistics Network through the impugned Executive Order is an absolute illegality,” stated LSK.

Similarly, LSK also claimed the reconstitution of the Board of Directors also amounts to the usurpation born constitution.

According to the society, the President cannot restructure or assign functions of State corporations that are under the functional ambit of the Public Service Commission and in case whose operations are contingent to an assigned statutory framework by Parliament.

Those named as respondents in the petition include the Attorney General, Head of Public Service, Treasury Cabinet Secretary.

Also named as interested parties include KPA, KPC, KRC and ICDC.

President Uhuru Kenyatta on August 7, 2020 signed an Executive Order merging the operations of KPA, KRC and KPC.

The order was set to guide the central management of public port, railway and pipeline services under the Kenya Transport and Logistics Network (KTLN) under the coordination of the Industrial and Commercial Development Corporation (ICDC).

Moreover, the three agencies were moved to the National Treasury which hence became their oversight ministry in line with prior recommendations of the Presidential Taskforce on Parastatal Reforms.

“The new framework also allows for the centralization and coordination of operations without amending existing laws,” said State House Spokesperson Kanze Dena in a statement to newsrooms.

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