MK254
JF-Expert Member
- May 11, 2013
- 32,238
- 50,415
Transport Principal Secretary Irungu Nyakera, 33, is the youngest PS in Kenya. The Master’s in Finance degree holder has been overseeing ministry projects since December last year. Recently, his docket was inflated to 14 institutions, making it one of the largest in government. He spoke to Star business reporter Martin Mwita on the ministry’s agenda and challenges.
You are the youngest PS in Kenya since Kenneth Matiba in the 1960s. How does it feel?
Certainly, I’m proud, but I also recognise the responsibility that comes with this role. I want to move it from the tradition of age to the traits that come with young age. We need to look at new solutions and more open interactions.
You are in charge of a huge docket, comprising 14 institutions. How has your background prepared you to handle this kind of responsibility at such a young age?
One is by knowing what needs to be done and two, who to do it. I am clear in my mind that I do not know everything, so I engage with people who have been there before. I have done this at NIC and Equity Bank.
You are overseeing construction of the standard gauge railway, which is largely financed by a foreign loan. How have you ensured the loan will not burden Kenyans?
The SGR is certainly the largest infrastructure Kenya has carried out since Independence, costing almost Sh1.01 trillion once fully complete. I want us to focus on its impact on GDP. It will cut the cost of transporting goods from 40-14 per cent, among other economic benefits.
Rwanda has pulled out of the SGR and Uganda is not keen. Is the project economically viable?
Uganda has remained committed to the SGR. They only opted for the southern route for the pipeline. Rwanda is the one that opted out. However, the cargo destined for Rwanda is 1.8 per cent of what comes through the Port of Mombasa, so from an economic sense, Rwanda’s exit might not necessarily impact on the commercial viability of our SGR.
How will you ensure port business grows at the same rate as the infrastructure?
Demand will find the supply. A study done in 2012 shows as of last year, our port capacity was 1 million TEUs (twenty-foot equivalent units). The demand in 2025 will be at 1.8 million TEUs, so we will be chasing this capacity. Let’s expand our facilities because the hinterland will definitely increase the port’s use.
What plans are there to make the Port of Mombasa a transit hub? We tried two years ago and failed.
The only limitation we’ve had is the KRA provision under the East Africa Customs Act, which requires us to treat
transshipment as though it is coming to the country. We will be removing the customs bond for transshipment cargo. Tanzania does not ask for the bond, so you are finding people going to TZ. For us, we need to repeal that and we will become a huge transshipment hub.
What are you doing to improve the poor services at the Likoni Ferry?
We have big plans for the ferry. We are purchasing and commissioning two new ferries, which will allow flexibility and ease pressure on the current fleet. The new ferries should be in the country by the next financial year. We have also allocated Sh150 million for maintenance and Sh500 million for security around the ferry.
We are planning to have an open ship register. What does this mean?
The Kenya Maritime Authority has begun by developing regulations on the ship register in Kenya. This will ensure we craft policies and manage the process in a manner beneficial to Kenyans, while avoiding the risks other countries have faced. KMA is recruiting a consultant to facilitate the process.
What policies informed the making of the register?
We are looking at how we can get ships registered in Kenya. This will create jobs and revenue. Ethiopia, which is landlocked, has about 30 ships registered, Liberia has a robust ship registry... So it’s really saying any ship can fly the Kenyan flag.
How far have you gone with recruitment of CEOs under your department?
The process rests with the boards. It is ongoing and we hope we can get some directions from them soon.
NTSA is seen as having turned into a cash cow targeting mainly private car owners. What’s your take?
I beg to differ. For months, NTSA has progressively addressed concerns and reduced fatalities from the highs of 21 per cent when we started the year to lows of 6.1 per cent now. There is still room for improvement, but we must also commend them for the action they have taken.
How far are we with the Nairobi commuter rail project?
This is a project I have taken a personal interest in. We cannot end traffic jams without a working rail system. We intend to have a new commuter line from Syokimau to the Central Business District by June next year. Phase II, which should be in another year, is from Syokimau to the airport. We have started upgrading all major stations and working on the main train station in the city under a Sh8.1 billion World Bank programme.
We tried and failed in the cashless system in public transport service. What next?
The system’s biggest challenge were interoperability of payment gadgets, the commission being charged by owners of the
gadgets, and finally, the time it takes for money to be reflected in the bank. However, an agreement has been reached. We aim to pilot the system next month.
Why did the government cancel the Sh56 billion Greenfield Terminal project?
It had too many challenges internally, ranging from structural to financial. No one was willing to fund the project on the basis that it was working on assumptions that were no longer viable. Kenya Airways was no longer delivering the numbers they imagined they would. The Nairobi hub was not attracting the interests it was assumed it would.
So we decided to remodell Terminal B, C and D. The remodelling will add a capacity of five million at a cost of about Sh20.2 billion — a quarter of what phase one of Greenfield would have cost us.
How far are we with construction of the new runway at JKIA?
About two weeks ago, we awarded the contract for detailed designs. We expect to tender for a contractor this year, then next year, we can break ground. The cost will be informed by the detailed designs, but it is in the range of Sh10.1 billion-Sh15.2 billion for a 6km runway.
Kenya is striving to have a Category One status for direct flights to the US. How far are we?
On May 9-13, the TSA (Transport Security Administration) came to inspect the airport and we passed with flying colours. They will give a final report 60 days from May 13. The final report hopefully will recommend us to get what is called the Last Point of Departure. This will prepare us for the final audit.
However, Parliament will have to pass our Civil Aviation Act, which [majority leader Aden] Duale has promised me will be done before June 15, ready for the final FAA (Federal Aviation Authority) audit in the first week of July. We have already started engaging Delta so we can have our flights as soon as we get the Act in place.
As the Transport PS, what are you doing to end the wrangles between Kenya Airways and its staff?
The pilots came in with about 19 demands, which we have discussed and agreed on some. Pilots have actually brought out an initiative to end the dispute, with measures like working during off time. The goodwill is there. Issues around Kalpa (Kenya Airline Pilots Association) and KQ have been cleared.
We can not end jams without Rail Systems
You are the youngest PS in Kenya since Kenneth Matiba in the 1960s. How does it feel?
Certainly, I’m proud, but I also recognise the responsibility that comes with this role. I want to move it from the tradition of age to the traits that come with young age. We need to look at new solutions and more open interactions.
You are in charge of a huge docket, comprising 14 institutions. How has your background prepared you to handle this kind of responsibility at such a young age?
One is by knowing what needs to be done and two, who to do it. I am clear in my mind that I do not know everything, so I engage with people who have been there before. I have done this at NIC and Equity Bank.
You are overseeing construction of the standard gauge railway, which is largely financed by a foreign loan. How have you ensured the loan will not burden Kenyans?
The SGR is certainly the largest infrastructure Kenya has carried out since Independence, costing almost Sh1.01 trillion once fully complete. I want us to focus on its impact on GDP. It will cut the cost of transporting goods from 40-14 per cent, among other economic benefits.
Rwanda has pulled out of the SGR and Uganda is not keen. Is the project economically viable?
Uganda has remained committed to the SGR. They only opted for the southern route for the pipeline. Rwanda is the one that opted out. However, the cargo destined for Rwanda is 1.8 per cent of what comes through the Port of Mombasa, so from an economic sense, Rwanda’s exit might not necessarily impact on the commercial viability of our SGR.
How will you ensure port business grows at the same rate as the infrastructure?
Demand will find the supply. A study done in 2012 shows as of last year, our port capacity was 1 million TEUs (twenty-foot equivalent units). The demand in 2025 will be at 1.8 million TEUs, so we will be chasing this capacity. Let’s expand our facilities because the hinterland will definitely increase the port’s use.
What plans are there to make the Port of Mombasa a transit hub? We tried two years ago and failed.
The only limitation we’ve had is the KRA provision under the East Africa Customs Act, which requires us to treat
transshipment as though it is coming to the country. We will be removing the customs bond for transshipment cargo. Tanzania does not ask for the bond, so you are finding people going to TZ. For us, we need to repeal that and we will become a huge transshipment hub.
What are you doing to improve the poor services at the Likoni Ferry?
We have big plans for the ferry. We are purchasing and commissioning two new ferries, which will allow flexibility and ease pressure on the current fleet. The new ferries should be in the country by the next financial year. We have also allocated Sh150 million for maintenance and Sh500 million for security around the ferry.
We are planning to have an open ship register. What does this mean?
The Kenya Maritime Authority has begun by developing regulations on the ship register in Kenya. This will ensure we craft policies and manage the process in a manner beneficial to Kenyans, while avoiding the risks other countries have faced. KMA is recruiting a consultant to facilitate the process.
What policies informed the making of the register?
We are looking at how we can get ships registered in Kenya. This will create jobs and revenue. Ethiopia, which is landlocked, has about 30 ships registered, Liberia has a robust ship registry... So it’s really saying any ship can fly the Kenyan flag.
How far have you gone with recruitment of CEOs under your department?
The process rests with the boards. It is ongoing and we hope we can get some directions from them soon.
NTSA is seen as having turned into a cash cow targeting mainly private car owners. What’s your take?
I beg to differ. For months, NTSA has progressively addressed concerns and reduced fatalities from the highs of 21 per cent when we started the year to lows of 6.1 per cent now. There is still room for improvement, but we must also commend them for the action they have taken.
How far are we with the Nairobi commuter rail project?
This is a project I have taken a personal interest in. We cannot end traffic jams without a working rail system. We intend to have a new commuter line from Syokimau to the Central Business District by June next year. Phase II, which should be in another year, is from Syokimau to the airport. We have started upgrading all major stations and working on the main train station in the city under a Sh8.1 billion World Bank programme.
We tried and failed in the cashless system in public transport service. What next?
The system’s biggest challenge were interoperability of payment gadgets, the commission being charged by owners of the
gadgets, and finally, the time it takes for money to be reflected in the bank. However, an agreement has been reached. We aim to pilot the system next month.
Why did the government cancel the Sh56 billion Greenfield Terminal project?
It had too many challenges internally, ranging from structural to financial. No one was willing to fund the project on the basis that it was working on assumptions that were no longer viable. Kenya Airways was no longer delivering the numbers they imagined they would. The Nairobi hub was not attracting the interests it was assumed it would.
So we decided to remodell Terminal B, C and D. The remodelling will add a capacity of five million at a cost of about Sh20.2 billion — a quarter of what phase one of Greenfield would have cost us.
How far are we with construction of the new runway at JKIA?
About two weeks ago, we awarded the contract for detailed designs. We expect to tender for a contractor this year, then next year, we can break ground. The cost will be informed by the detailed designs, but it is in the range of Sh10.1 billion-Sh15.2 billion for a 6km runway.
Kenya is striving to have a Category One status for direct flights to the US. How far are we?
On May 9-13, the TSA (Transport Security Administration) came to inspect the airport and we passed with flying colours. They will give a final report 60 days from May 13. The final report hopefully will recommend us to get what is called the Last Point of Departure. This will prepare us for the final audit.
However, Parliament will have to pass our Civil Aviation Act, which [majority leader Aden] Duale has promised me will be done before June 15, ready for the final FAA (Federal Aviation Authority) audit in the first week of July. We have already started engaging Delta so we can have our flights as soon as we get the Act in place.
As the Transport PS, what are you doing to end the wrangles between Kenya Airways and its staff?
The pilots came in with about 19 demands, which we have discussed and agreed on some. Pilots have actually brought out an initiative to end the dispute, with measures like working during off time. The goodwill is there. Issues around Kalpa (Kenya Airline Pilots Association) and KQ have been cleared.
We can not end jams without Rail Systems
