CHAPTER THREE
INVESTING IN INFRASTRUCTURE
The Challenges:
Kenya’s population is projected to grow to over 60 million people by the year 2043. There will be numerous challenges concerning the provision of optimal infrastructure and services to meet the demands of this population. Such challenges are already manifest and are barely met where the majority of the Kenyan population have no access to clean water, food and shelter; lack appropriate sanitation facilities: lack the capacity to use ICT services; and are faced with insecurity and lack good roads and energy in most urban and rural areas. Where there is such infrastructure, there are prohibitive costs of access, which has locked out the majority of Kenyans who live below the poverty line.
Our Commitments:
ODM will invest at least 10% of our GDP on infrastructure development over the next 5 years. We will build good roads that will reach all Kenyans and cover all parts of the country, thus achieving our ambition to get Kenyans and Kenya genuinely connected.
We will address the existing imbalance in the provision of road infrastructure that is concentrated on the so called “high potential areas” to improve accessibility for the development of all economic sectors and regions in Kenya.
We will introduce a modern integrated rail infrastructure that connects Kenyans. The opening of the new rail line is our special pledge for Kenya’s 50th Independence Anniversary.
We will enhance the reliability of electricity supply; increase access to electricity in rural areas and lower energy costs through expanded private sector participation.
Road Transport Infrastructure
The Challenges:
Research shows that the economic slowdown over the last three decades is partly attributed to the poor state of road infrastructure in the country. Road transport alone accounts for over 80% of the total internal freight and passenger traffic in the country with the remainder being mainly carried by rail and only a small portion by air.
There are over 65,000 km of classified roads (14% paved), 15,000 km of municipal roads (17% paved) and 120,000 km of unclassified roads of which there is no inventory. Of these roads, 20% paved, 30% gravel and 60% earth roads are in poor condition.
The roads sub-sector is reeling under a large backlog of road rehabilitation and maintenance work that requires large amounts of funding. At the national level, over 50% of total classified road network require urgent rehabilitation to bring them to maintainable conditions at an approximate cost of Kshs 150 billion (approximately US$ 1.9 billion). Further, there are other crucial cross-country networks and networks in marginalized areas, referred to as ‘low potential areas’, that require urgent development to take roads to where all Kenyans live and enhance accessibility and national mobility.
The existing institutional framework for roads delivery is inefficient. There is inadequate local contracting capacity, thus hampering optimal and competitive participation of local road contractors.
There is no appropriate mechanism for private sector investment in the funding of road development or maintenance.
The Road Maintenance Levy Fund (RMLF) is insufficient for maintenance o the public road network and can only cover 60% of the maintenance requirements if the road network was in good maintainable state.
Road rehabilitation and development is too dependent on external support. The Government has insufficient funds for rehabilitation, upgrading and new construction. There is currently no comprehensive policy for financing the road sector.
It is estimated that backlog maintenance alone requires approximately Kshs 100 billion which, if implemented, over a 5 year period equates to Kshs 20 billion per year. Periodic and routine maintenance requires an additional Kshs 15 billion per year. In addition we urgently need Kshs 20 billion per year for network expansion. However, the current funding arrangements allow for about Kshs 28 billion annually for both maintenance and development of the road network.
Overloading by heavy goods vehicles has led to deterioration of the network over a long period of time. The recent Nairobi Master Plan Study recommends an investment in new infrastructure of approximately Kshs 5 billion per year. Urgent upgrading and development in other major towns as well as main and feeder rural roads require an additional Kshs 10 billion per year.
An improved road network to facilitate the economic growth of Kenya would thus require approximately Kshs 80 billion per year, 4% of GDP using 2007 statistics. Currently, Kenya’s GDP is approximated to be at Kshs 2,040 Billion. The World Bank recommends using at least 7% of GDP for infrastructure. This includes rail and air transport as well as the water sector.)
There is severe vehicle congestion on roads within large towns and a lack of sufficient parking in addition to the low performance of the Railways sector, which has led to overburdening of the main roads that now have to carry a large proportion of heavy goods than would otherwise be the case.
Your ODM Government will:
• Institutionalise budgetary provision for road infrastructure to 4% of the current GDP.
• Review tendering processes for design and construction of roads to reduce time lag.
• Reduce procurement procedures in order to fast-track donor funded programmes.
• Bitumenise all international dual carriageways linking Kenya to its neighbours.
• Bitumenise all roads linking all the regions in the country and all roads linking rural areas to district headquarters and key service centres.
• Bitumenise all urban arterial and access roads.
• Create a commercial environment for increased private – public partnership in the provision of high quality, cost-effective road building and maintenance.
• Concession major international dual carriageways.
• Use labour intensive methods in roads construction to create employment cells countrywide. Minimum wages will be set to stem overexploitation of women and youth.
• Create Road Maintenance Training Centres in the devolved regions to skill-up labourers through apprenticeship schemes.
• Enforce strict load capacity according to the grade of the road and mandate the judicial authorities to impose stiffer penalties on road abusers by reviewing both the Traffic Act and the Transport Licensing Act.
Rail Infrastructure
The Challenges:
There has been a lack of investment by both the government and the private sector on rail infrastructure over the years. As a result, the existing Kenyan rail network is almost obsolete due to its outdated technology and aged condition. The existing rail technology is inefficient and expensive to manage. The narrow-gauge (one-meter-track) rail network limits capacity and speed of trains.
Currently, there are too many overloaded freight vehicles on the road carrying cargo which should be transported by railway. Long distance intra-urban travel between Nairobi, Mombasa, Kisumu and other towns takes long hours or days to accomplish by the existing rail network. Further, air transport is expensive thus forcing the majority of people to be dependent on road transport. This scenario limits opportunities and turnaround time for transacting business between cities.
Urban commuter rail infrastructure and services are currently lacking in major cities in the country while its operations in Nairobi is inappropriate and unplanned. This situation has led to prime journey time rising from an average of 20 minutes to over 40 minutes in key city networks during peak hours.
There is poor coverage of rail network in the country, while the existing network is inadequately maintained. The existing capacity of the railway is under-utilized. The rail system has a capacity of more than 6 million tonnes per year while it only handles 2.4 to 3.2 million tonnes per year.
The recent transfer of management of rail services to Rift Valley Railways has not addressed the need for fresh investment in rail infrastructure in Kenya.
Your ODM Government will:
• Construct a modern, electric, international standard 1.6m gauge, high speed railway system to link key cities and towns in the country for rapid transit of passengers and bulky goods. This would protect our roads and lower costs for businesses.
• Develop a light railway transport network for Nairobi and major cities.
• Pursue public - private investment in railways.
• Invest in an optimal power generation system to enable electric power supply for a modern electric railway infrastructure.
Maritime and Inland Waterways Infrastructure
The Challenges:
The maritime sector has not had any significant investment in infrastructure for over 35 years now. The largest development in the 1980s was the establishment of inland container depots in Nairobi, Kisumu and Eldoret. The Port of Mombasa has been a regional hub in Eastern and Central Africa but is fast losing ground to other ports like Dar-es-Saalam due to inefficiency and lack of port infrastructure development strategy. Mombasa Port is the key to the economies of countries, such as, Uganda, Burundi, Rwanda, Democratic Republic of Congo, Ethiopia, and Southern Sudan, Northern-Eastern Tanzania and Somalia also rely on Mombasa Port for import and export operations.
There are many undeveloped potentials in the maritime sector. Lamu has a potential for being a deep-sea port in addition to a regional passenger hub.
Kisumu has a big potential for being a regional inland water port. It shall be the main driver for other regional ports such as Bukoba, Jinja, Mwanza and Port Bell.
Lake Turkana has also the potential of being an inland water transport link with Ethiopia.
Dongo Kundu area that was acquired in 1976 for the purpose of developing an EPZ has a shoreline of 2000 meters of straight quay. This has remained undeveloped.
Our Commitments:
We will review maritime legislation and improve efficiency in cargo handling and clearance.
We will continue the equipment modernization programme at the ports and invest in building new facilities. We will enhance maritime safety and security and increase our seaborne trade.
Your ODM Government will:
• Pursue public - private investment in ports operation.
• Increase the capacity of the Port of Mombasa and overhaul the equipment required for efficient operations and establish a free trade area.
• Develop other minor satellite ports, such as, Lamu and Kisumu through strategic partnership approaches which tap the potential of private sector in port development and management.
• Enhance safety of maritime transport.
• Establish a Coast Guard service to link up with other international community coastguards in strengthening a safe and secure maritime industry.
• Revitalise the inland waterways port infrastructure in the lake region with Kisumu as a regional inland waterways hub to link with other regional ports such as Bukoba, Jinja, Mwanza and Port Bell.
• Establish an inland waterways transport infrastructure around Lake Turkana to improve mobility around the lake and also provide a link with neighbouring Ethiopia.
Air Transport Infrastructure
The Challenges:
Air transport has grown in demand from both the local business community as well as foreign tourists and investors. It is also the most cost effective means of transport for high yielding exports and perishable goods like floriculture and fish products. It therefore has the potential to catalyse the consolidation of economic gains and spur further growth. In spite of the existence of a good network of airstrips and aerodromes, these investments are lying idle completely neglected.
There are about 570 aerodromes in Kenya, of which 156 are public. Of the public aerodromes, nine (9) are currently managed directly by the Kenya Airports Authority (KAA). Jomo Kenyatta International Airport is currently playing the role of a regional hub within Eastern, Central and parts of Southern and North Africa. Moi International Airport at Mombasa is playing a major role as a tourist reception facility for the country at the Coastal zone as an entry and exit point.
Eldoret International Airport which was built in late 1980 and early 1990s at a cost of Kshs 2.0 billion is providing an alternative entry and exit point into and out of the country through Western Kenya.
Kisumu Airport is rapidly gaining popularity due to increasing demand for air transport as a mode of travel linking Western Kenya with other parts of the country and the region.
Your ODM Government will:
• Continue the modernization and expansion of Jomo Kenyatta International Airport to make Nairobi a major hub for air transit to the Middle East, South Asia, the Far East and Australasia.
• Establish Kisumu Airport as a hub for flights within the Great Lakes region. The Airport is equally strategic as a gateway to the Western Kenya Tourist circuit that is yet to be exploited to its full potential.
• Establish Malindi as a regional airport and develop an airport in the Gusii/Southern Nyanza region to serve Southern Nyanza and Maasai Mara tourist needs.
• Enhance airport facilities at Wajir, Isiolo, Mandera and Lokichoggio to cater for increased passenger traffic to and from Southern Sudan, Somalia and Ethiopia.
• Upgrade airstrips at provincial capitals and institute proper maintenance of all other airstrips and aerodromes through public-private partnerships.
• Maintain airstrips in national parks to provide safety for tourists visiting the game reserves.
• Liberalise the air transport sector to attract publicprivate ventures.
• Enhance the capacity of civil aviation regulatory authorities and eliminate the possibility of conflict by separating regulatory functions from service providers like air navigation services and airports.
• Urgently address deficiencies in air transport safety and airport security.
Energy
The Challenges:
It is important to note that demand for electric power supply in Kenya is growing at 9% per annum, which is above the supply levels of 7%.
Studies have shown that there is a direct linkage between electric power supply, job creation and
poverty alleviation. Electric power supply increases people’s opportunities for self-employment at the small and micro enterprises levels. Electrifying rural areas, towns and markets is therefore expected to increase opportunities for employment in the centres and improve living standards in new supply areas.
Electricity tariffs in Kenya still remain among the top five highest in Sub Saharan Africa and the second highest in East Africa after Uganda due to limited resources and losses along the grid. Retail prices of electricity in the Southern African region have been and are currently low by international standards.
Your ODM Government will:
• Address the high electricity tariffs to the manufacturing industry with a view to reducing them, thus making Kenyan goods competitive both locally and internationally.
• Encourage the participation of Independent Power Producers for generation, supply and distribution of electricity.
• Increase electricity generation capacity to 10,000 megawatts in the next 10 years to attract foreign direct investment.
• Strengthen the regulatory functions of the Electricity Regulatory Board.
• Explore and exploit geothermal resources to increase electric power generation to meet the emerging demands for electricity.
• Develop solar power stations and wind farms as renewable sources of energy.
• Reduce current system grid losses of electric power.
• Exploit the electric power resources of bagasse based cogeneration in sugar milling factories.
• Pursue oil and coal exploration to tap fossil fuels potential.
• Expand oil storage capacity to have a strategic fuel reserve and enter into bilateral trade agreements with oil exporting companies to import oil at stable and lower price.
• Exploit biomass energy resource in Kenya.
• Establish a national centre of excellence in renewable energy as a priority.
• Develop a regional power pool and a supporting domestic electricity industry structure.
• Expand rural electrification penetration through sufficient allocation of public resources.
• Divest government interests in oil refining and marketing and in the Kenyan Pipeline Company.
• Construct the necessary Liquefied Petroleum Gas infrastructure to increase consumption.
• Ensure that domestic production of motor fuels meet international quality standards.
Urban Infrastructure and Urban Development
The Challenges:
Urbanisation in Kenya has been growing rapidly since independence. However, the high rate of urbanisation has not been met with commensurate urban infrastructure and services, most notably urban transport infrastructure (roads, railroad, and
pedestrian thoroughfares).
Our Commitments:
We will undertake construction of roads in cities and principal towns through a mix of Labour-Based Hand-Packed-Stone and machine based methods to create jobs for the youth and spur real and sustainable growth.
We will undertake a comprehensive and integrated urban passenger transport system.
Your ODM Government will:
• Institute traffic management strategies to reduce travel time and cost of transport.
• Provide transport infrastructure facilities such as parking bays.
• Complete the construction of missing road-links in Nairobi City and other cities to provide efficient transport infrastructure and service connectivity.