Kenya President Uhuru Kenyatta on Thursday witnessed the signing of a Memorandum of Understanding (MoU) between the Ministry of Transport and Infrastructure and the Mediterranean Shipping Company (MSC) for the revival of the Kenya National Shipping Line (KNSL). The MoU was signed by Transport and Infrastructure Cabinet Secretary James Macharia and Captain Giovanni Cuomo, the First Vice President of Mediterranean Shipping Company (MSC) which is one of the leading global container shipping companies in the world. Mediterranean Shipping Company (MSC) yesterday signed a deal in front of Kenya’s president to revive one of Africa’s most famous shipping lines.
Speaking during the signing ceremony at State House, Nairobi, President Kenyatta said the revival of the shipping line was a priority for Kenya because it would create jobs for thousands of Kenyans.
“We are very keen to revive the shipping line. And we are confident that we can run the shipping line again,” President Kenyatta said.
President Kenyatta welcomed the Government’s partnership with the Mediterranean Shipping Company in the revival efforts, saying he expects the relevant teams to work with dedication and speed so that the shipping line is launched soon.
“This is a valued partnership between Kenya and the private sector. I look forward to launching the shipping line soon,” said The President.
In reviving KNSL through the partnership with MSC, the shipping line is expected to once again become an active participant in international seaborne trade which accounts for a significant percentage of Kenya’s total trade.
The Kenya National Shipping Line was established in 1987 as the national carrier for seaborne trade but years of mismanagement led to its near collapse necessitating the current proactive efforts to restart its operations.
Kenya National Shipping Line has been struggling for many years and has been close to insolvent. The shipping line has been ailing for decades and previous efforts to revive it have failed. Kenya reckons the KNSL is nearing insolvency due to a lack of business.
Kenya Government statement released on Tuesday says, the dormant Kenya National Shipping Line (KNSL) would be revived in a restructuring that will see the exit of three other foreign shareholders.
“The recovery strategy proposed, among other things, is giving the company the sole mandate to handle government cargo,” a statement from the Government earlier this week stated adding “The recovery strategy proposed, among other things, is giving the company the sole mandate to handle government cargo,”
This means it will ship government goods and State tenders offered to private investors such as import of subsidised fertiliser.
The government will seek to allocate a percentage of cargo to be shipped through the line and encourage partnerships with major international maritime companies. This is in addition to government cargo that should as a matter of law be shipped by the KNSL.
Multinational shipping lines have been angling for control of the KNSL as the government looks to revive the struggling parastatal. Sources said the PIL, Maersk and MSC were all eyeing control of the shipping line, encouraged with the guarantee of handling more than millions of shillings worth of business from government annually.
The foreign shareholders in the dormant shipping line include Mediterranean Shipping Company and MS Oceanfreight Ltd.
The revival of the shipping line is expected to return Kenya to its historical place as a rich seafaring nation with highly respected shippers. The shipping line has the potential to contribute over 300 billion shillings ($2.9 billion) to the country’s economy annually together with over 10,000 Jobs.
Speaking during the signing ceremony at State House, Nairobi, President Kenyatta said the revival of the shipping line was a priority for Kenya because it would create jobs for thousands of Kenyans.
“We are very keen to revive the shipping line. And we are confident that we can run the shipping line again,” President Kenyatta said.
President Kenyatta welcomed the Government’s partnership with the Mediterranean Shipping Company in the revival efforts, saying he expects the relevant teams to work with dedication and speed so that the shipping line is launched soon.
“This is a valued partnership between Kenya and the private sector. I look forward to launching the shipping line soon,” said The President.
In reviving KNSL through the partnership with MSC, the shipping line is expected to once again become an active participant in international seaborne trade which accounts for a significant percentage of Kenya’s total trade.
The Kenya National Shipping Line was established in 1987 as the national carrier for seaborne trade but years of mismanagement led to its near collapse necessitating the current proactive efforts to restart its operations.
Kenya National Shipping Line has been struggling for many years and has been close to insolvent. The shipping line has been ailing for decades and previous efforts to revive it have failed. Kenya reckons the KNSL is nearing insolvency due to a lack of business.
Kenya Government statement released on Tuesday says, the dormant Kenya National Shipping Line (KNSL) would be revived in a restructuring that will see the exit of three other foreign shareholders.
“The recovery strategy proposed, among other things, is giving the company the sole mandate to handle government cargo,” a statement from the Government earlier this week stated adding “The recovery strategy proposed, among other things, is giving the company the sole mandate to handle government cargo,”
This means it will ship government goods and State tenders offered to private investors such as import of subsidised fertiliser.
The government will seek to allocate a percentage of cargo to be shipped through the line and encourage partnerships with major international maritime companies. This is in addition to government cargo that should as a matter of law be shipped by the KNSL.
Multinational shipping lines have been angling for control of the KNSL as the government looks to revive the struggling parastatal. Sources said the PIL, Maersk and MSC were all eyeing control of the shipping line, encouraged with the guarantee of handling more than millions of shillings worth of business from government annually.
The foreign shareholders in the dormant shipping line include Mediterranean Shipping Company and MS Oceanfreight Ltd.
The revival of the shipping line is expected to return Kenya to its historical place as a rich seafaring nation with highly respected shippers. The shipping line has the potential to contribute over 300 billion shillings ($2.9 billion) to the country’s economy annually together with over 10,000 Jobs.
