This Memorandum is intended to initiatediscussion regarding the appropriate infrastructure strategyand policy direction which will lead to a sustainabletransport sector which provides access for people and goodswithin Kenya and integrates Kenya into the global economy.Unless these two objectives are achieved, the prospects forsubstantial and continuing social and economic developmentin Kenya are limired. Large segments of Kenya'spopulation will remain isolated in the rural areas, and theeconomy will continue as a producer of primary commoditiesand basic manufactues for domestic and perhaps regionalconsumption. The report states as the first and mostimportant action to reverse the deterioration in thetransport sector, a very major change in the philosophicapproach of politicians to the sector is needed. They haveto start to treat infrastructure as integral to the economicrather than the political process. Beyond this overarchingchange in approach, the following should also be consideredas needed steps for implementing the strategy: increaseprivate sector investment and management in the ports,airports, railways, and roads systems; reduce the role ofthe public sector in day-to-day management while retainingcore functions for all modes of transportation andincreasing public funding; and in terms of financing, relyon performance contracting under either maintenanceconcessions or long-term performance-based contracts.