Buffering public enterprises from government: The case for privatising Kenya Railways and Kenya Ports Authority

Kenya's transport infrastructure is tattered. Government has failed, repeatedly, to institute changes or policies that reflect a change in the economy, which impact on transport. It is in this failure that Kenya Railways and Kenya Ports Authority find themselves battling for survival. Their infrastructure is dilapidated, the level of service dismal, they are inefficient, have a low level of productivity and lack autonomy in decision making.; Privatisation of these two enterprises can bring them to operate as commercial entities and provide acceptable transport services. It redefines their relationship to government and creates fundamental mechanisms that allow them to operate efficiently. In shifting some assets, management and operations, the enterprises acquire capital and the role of government within the enterprises is altered, shielding them from excessive politics, government incompetence or unwillingness to institute any meaningful reform. With careful planning and implementation these two enterprises can be set back on track.