13.0 PHYSICAL INFRASTRUCTURE DEVELOPMENT

The development of physical infrastructure is a vital ingredient in development. The level of development of infrastructure affects Kenya’s competitiveness. The quality of infrastructure is therefore key to Kenya’s competitiveness because it directly affects the cost of production. Firms operating in an environment which have inadequate infrastructure are characterized by high costs of production thus reducing their level of competitiveness. Kenya’s state of infrastructure is inefficient. Special attention therefore must be paid to its improvement in order to expand the markets of our goods locally, Regionally and Internationally. Physical infrastructure includes transport infrastructure, energy, water and irrigation.

13.1 Transport Infrastructure

The transport sector plays a crucial role in the National and socio-economic development. It includes roads, marine transport, vehicular transport, air transport, oil pipeline and railways. An efficient network of transport infrastructure is a crucial requirement for the economy to achieve high rates of sustainable growth. Large segments of our road infrastructure especially the rural roads are impassable during the rainy season. Poor roads result in losses due to wastage and increased transportation costs thus affecting Kenya’s competitiveness. DP Government will put more emphasis on the maintenance and rehabilitation, provision of appropriate budgetary allocation, increased opportunity for the private sector to participate in infrastructure development, increased transparency in the awarding of contracts and institutional development and legislative reform for the sector. The DP Government shall also review the management and operations of the District Road Council currently under the Chairmanship of local authorities and where the money is disbursed by Members of Parliament. Further the implementation strategy shall deliberately evolve systems that link the operations with the universities primarily for skills and knowledge development including ICT.

In order to improve efficiency in transport systems, the DP Government will implement the following strategies:

13.2 Oil Pipeline

1. In collaboration with the Republic of Uganda extend the oil pipeline to Kampala

2. Modernize the East African Refineries in Mombasa to enhance its ability to process high quality petroleum products

3. Privatize Kenya Pipeline in order to improve its operational and financial efficiencies.

4. Intensify oil exploration

13.3 Road

1. Guarantee availability of adequate funding for regular road maintenance.

2. Enhance road safety and security through improving road network and installing surveillance cameras to monitor traffic

3. Work with Government in the Region on the road network and the Northern Corridor to include Isiolo and Moyale

4. Work towards the private sector participation e.g. on the Nairobi-Mombasa highway

5. Build by-passes in major towns to reduce traffic congestion (especially

in the peak hours).

6. Establish more dual carriage ways to reduce traffic congestion.

7. Increase investment in road network with special reference to access roads in the rural-urban centres.

8. Make provisions for pedestrians, bicycles and carts along roads.

13.4 Marine Transport

1. Develop the Port of Mombasa into a Free Port.

2. Improve and modernize port infrastructure.

3. Improve and expand the container handling facilities at both the Port of Mombasa and in the Inland Container Depots.

4. Develop a port at Lamu.

13.5 Air Transport

1. Undertake the modernization of air traffic management system.

2. Improve the existing and expand Airports to enhance their ability to handle medium range jets.

3. Improve all the airports facilities to be in conformity with the Civil

4. Aviation Organization (ICAO) standards and recommended practices.

5. Upgrade Jomo Kenyatta International Airport to be a premier regional hub for air access.

13.6 Rail Transport

1. Undertake rehabilitation and repair of locomotives, wagons and equipment.

2. Consider the possibility of the Kenya Railways operating light railway network to serve greater Nairobi.

3. Enhance and expand the performance of the rail network to reduce the transport costs in terms of time.

4. Modernize and build the passenger train network to international standards

5. Provide international standards of rail and rolling stocks

13.7 Energy

The DP is cognizant that the availability of adequate and reliable supply of energy like other infrastructures is a basic prerequisite for the rapid development of our industrial, commercial and agricultural sectors. Kenya’s major sources of energy include petroleum fuels, electricity and wood fuel. To a lesser extent Kenya also uses solar energy, wind, ethanol, coal and biogas. If Kenya is to attain a rapid economic growth and development, we must maintain adequate supply of energy. In order to guarantee adequate power supply, the DP Government will implement the following strategies:

1. Develop a comprehensive energy policy and legislation taking into consideration environmental concerns.

2. Intensify the rural electrification program through the creation of a specific statutory body to implement the program

3. Encourage the private investors to invest in the generation, transmission and distribution of energy.

4. Intensify geothermal exploitation.

5. Encourage the use of solar energy and provide the opportunity to increase the use of wind, ethanol and biogas sources of energy.

6. Develop a program of reforming the energy sector.

7. Create a fund for research and developing renewable sources of energy.

8. Mine the coal deposits in Eastern Province.

9. Initiate projects to fund and develop affordable energy for rural enterprises

10. Explore new and renewable energy

11. Programme for rural consumers in solar and biogas especially in schools.