Tag: Kenya Railways

  • Fresh Move Launched to Remove Kenya Railways MD Mainga From Office After Awarding Sh817 Million Consultancy Contract

    Fresh Move Launched to Remove Kenya Railways MD Mainga From Office After Awarding Sh817 Million Consultancy Contract

    Philip Mainga has spent years constructing an almost impenetrable wall of silence around the most basic questions that governance demands of any public officer: What instrument authorises you to be here? When does it expire? Who approved your continuation? For years those questions went unanswered, buried under a combination of board inaction, judicial restraint and the raw political cover that comes from knowing the right people. That wall now faces its most serious battering yet, and the ammunition is accumulating from every direction simultaneously.

    On June 4, 2026, a Nairobi resident by the name of Masha Wario marched to the Employment and Labour Relations Court and filed a petition under a certificate of urgency, placing before Justice Monica Mbaru a direct demand: stop Philip Mainga from exercising any further authority as Managing Director and Chief Executive Officer of Kenya Railways Corporation until his continued tenure can be shown to have a lawful foundation.

    The petition names the Public Service Commission and the Kenya Railways Board as respondents, enjoins the Ethics and Anti-Corruption Commission as an interested party, and is scheduled for hearing on June 15, 2026.

    The timing is not coincidental. The petition lands precisely one week after the Public Procurement Administrative Review Board cleared Kenya Railways to proceed with the award of an Sh817,677,187 consultancy contract to Mace YMR LLP for the design and construction of the Nairobi Railway City Central Station.

    That clearance, which came on May 27, 2026, formally dismissed a challenge by rival bidder Dar Kenya/Dar Plus Joint Venture. It should have been a moment of institutional triumph. Instead it has become the trigger for yet another escalation, because what accompanied the tender award in the shadows was far more damaging than any procurement board ruling could sanitise.

    Sources indicate at least Ksh130 million in promised bribes allegedly at play between Mainga and officers of the Mace YMR LLP consultancy firm.

    THE SH817 MILLION TENDER AND THE BRIBERY TRAIL

    The Public Procurement Administrative Review Board found that Mace YMR LLP’s proposal was substantially compliant and that Dar Kenya/Dar Plus Joint Venture had properly been disqualified at the preliminary evaluation stage for failing to submit certified audited accounts for three consecutive financial years and for submitting practising licences lacking proper signatures.

    Kenya Railways argued, and the board agreed, that Articles 227(1) of the Constitution alongside Sections 79 and 80 of the Public Procurement and Asset Disposal Act required strict adherence to mandatory criteria and did not permit the waiver of fundamental deficiencies.

    On paper the procurement process ended there: a clean ruling, a compliant winner, a cleared path to contract signature.

    Beneath the surface, however, an entirely different picture is emerging. Investigative sources with direct knowledge of the procurement negotiations allege that behind-the-scenes bribery discussions were ongoing between Kenya Railways officials and management officers of Mace YMR LLP, with at least Ksh130 million in promised inducements allegedly at play.

    A trail of communications and secret meetings between Mainga himself and officers of the firm is said to be available for scrutiny, and the development is expected to open the lid on possible multiple criminal investigations into the Nairobi Central Station procurement process at Kenya Railways.

    The Nairobi Central Station redevelopment is not a minor contract. It is the centrepiece of the broader Nairobi Railway City project, a flagship programme jointly financed by the governments of Kenya and the United Kingdom under the UK Export Finance framework and described by proponents as a transformative urban infrastructure intervention.

    That such a project may now be tainted by corruption allegations at the very moment of contract award raises profound questions about the integrity of Kenya’s entire infrastructure procurement pipeline and the continued credibility of the UK export finance relationship.

    THE PETITION: WHAT WARIO IS ASKING THE COURT TO COMPEL

    Masha Wario’s petition is notable for the breadth of what it demands by way of disclosure, which in itself speaks to the depth of the opacity surrounding Mainga’s continued service.

    The petitioner contends that the office of the Kenya Railways Managing Director is a public trust position, constitutionally required to be exercised in accordance with national values under Articles 10, 73 and 232 of the Constitution.

    The uncertainty over whether lawful authority for Mainga’s continued occupancy of that office exists, the petition argues, undermines public confidence and constitutional accountability.

    The court is being asked to compel the Public Service Commission and the Kenya Railways Board to produce employment contracts, renewal agreements, board resolutions, gazette notices, performance contracts and any instruments authorising his continued service.

    The petitioner additionally wants disclosure of agreements and instruments executed during the disputed period, including those linked to commuter rail developments and international engagements. Pending the full hearing, conservatory orders are sought barring Mainga from performing the duties of the office entirely. The June 15 hearing date gives Kenya Railways and the PSC fourteen days to file responses.

    The urgency is self-evident. Mainga’s tenure officially expired on January 3, 2026. Kenya Railways issued no public notice of competitive recruitment, the board maintained complete silence, and the managing director simply continued to operate as though nothing had happened.

    A whistleblower report submitted to the EACC has accused Mainga of securing a controversial 2023 term extension through alleged bribes paid to then Transport Cabinet Secretary Kipchumba Murkomen and to KRC board members, ensuring a continuation to 2026 that activists describe as doubly irregular: irregular in how it was obtained and then compounded by an informal rollover beyond even that extended date. The Public Service Commission has reportedly opened its own inquiry into the circumstances of that extension.

    Mainga’s tenure officially expired on January 3, 2026. No competitive recruitment was announced. No board resolution was published. He simply stayed.

    THE EARLIER PETITIONS: A PATTERN OF FAILED ACCOUNTABILITY

    Wario’s petition is not the first. It is not the second or the third. It is merely the most recent in a long procession of legal challenges that have sought, and thus far failed, to dislodge Mainga through the courts.

    In September 2024, human rights defender Eric Kithinji Mwiti filed a constitutional petition before the High Court seeking Mainga’s removal over allegations of corruption, irregular procurement, fictitious compensation payments for land in the Datuto/Dafur Settlement Scheme and the embezzlement of public funds in violation of Articles 10, 73 and 232 of the Constitution.

    The High Court struck out that petition in November 2025 on preliminary jurisdictional grounds, ruling that the power to remove the managing director rests with the Cabinet Secretary under the Kenya Railways Corporation Act and that complainants should first channel grievances through the EACC. The substantive allegations of misconduct were never tested on their merits.

    Earlier in 2026, the Consumers Federation of Kenya filed a separate court challenge arguing that Mainga had served beyond two standard three-year terms, had remained in acting and substantive roles for combined extended periods and had continued past the mandatory retirement age of 60.

    COFEK’s filing cited fraud cover-up allegations and demanded that the board account for how someone operating without a transparent, publicly disclosed legal mandate had continued to sign contracts, award tenders, conduct international negotiations and bind a strategic national institution.

    Civic activists Matasi Yatundu, Timothy Rasugu and Julius Chebitok have filed or supported actions seeking EACC and Directorate of Criminal Investigations scrutiny of all financial transactions conducted under Mainga’s tenure and the recovery of allegedly lost public funds. Separately, Francis Owino and Ezekiel Okoth moved to court in 2023 alleging that Mainga’s tenure facilitated the loss of Sh700 billion in the Standard Gauge Railway tender scandal and accusing him of illegal tenure extension and gross transgressions of the law.

    In every instance so far, procedural hurdles and jurisdictional questions have provided Mainga with the legal breathing room he needs to continue.

    The Wario petition, filed through the Employment and Labour Relations Court with a certificate of urgency and supported by the specific framing of public trust, constitutional accountability and the absence of disclosed authorising instruments, attempts to navigate around those procedural obstacles. Whether Justice Mbaru will entertain it where earlier courts refused is the question Kenya’s governance watchers are now asking.

    TWO CONTEMPT CONVICTIONS: A RECORD WITHOUT PRECEDENT IN KENYA’S PARASTATAL SECTOR

    Before the ink on the Wario petition was dry, Mainga was already a twice-convicted contemnor of court. The significance of this cannot be understated. Very few senior state corporation executives in Kenya’s history carry even one contempt conviction. Mainga carries two, both within fourteen months of each other, both involving the deliberate demolition of private property in defiance of active court orders.

    The first conviction came in April 2025, when Justice Anthony Ombwayo of the High Court in Nakuru found Mainga guilty of contempt for failing to pay businesswoman Monica Macharia Sh45.5 million in compensation following the illegal bulldozing of her property on October 11, 2020. Macharia had owned the one-acre plot along the Nakuru-Kisumu highway since 1995, operating a bag manufacturing factory and rental premises from the land.

    Kenya Railways officials summoned her to their offices in March 2020, ostensibly to clarify ownership. Within months her business was rubble. She sued for Sh132 million and was awarded Sh45.5 million in October 2023. Kenya Railways refused to pay. By February 2025 the interest-accrued figure had grown to Sh54 million. Mainga was found in contempt, failed to appear in court on the day he was to show cause why he should not be jailed, and eventually consented to pay Sh10 million quarterly, with the final instalment scheduled for July 30, 2026.

    The second conviction arrived with far greater political resonance.

    In May 2026, Justice Oscar Angote of the Environment and Land Court found Mainga and Acting Corporation Secretary Stanley Gitari guilty of contempt for knowingly disobeying court orders issued on March 11, 2026, which had explicitly barred any demolition, construction or further activity on a contested parcel of land along Douglas Wakiihuri Road near Nyayo National Stadium.

    That land housed businesses associated with Kiambu Governor Kimani Wamatangi, specifically a car wash, carpet cleaning facility, restaurant and car yard operated by Superclean Shine Enterprises Limited and King Prime International Limited. The businesses were razed overnight in January 2026. An independent court-ordered inspection confirmed what the petitioners alleged: the land had become an active construction site with excavated trenches, piles of aggregate and workers in protective gear. Justice Angote concluded that the essential elements of contempt had been proved beyond doubt. Mainga and Gitari are scheduled to appear before the court for mitigation and sentencing on June 25, 2026, where they face fines, imprisonment or both.

    The pattern is not one of institutional failure. It is one of institutional culture. Kenya Railways under Mainga has demolished first and litigated later, counting on the delays of the judicial system to absorb the consequences while construction proceeds.

    In the Wamatangi-linked case, construction resumed on January 22, 2026, one day after service of the original orders, continued on January 24 and January 25, and received a cease-and-desist letter from opposing lawyers on January 23 that was simply ignored.

    Two contempt convictions. Seventeen billion in avoidable SGR penalties. Billions in fictitious land compensation. This is not a governance failure. This is a captured institution.

    THE LAND FRAUD ARCHITECTURE: 544 PARCELS AND COUNTING

    Perhaps no dimension of the Mainga era is more financially devastating than the land scandal. Audits and investigative disclosures have identified over 544 parcels of public railway land allegedly transferred to private individuals without proper authorisation under his watch, covering prime properties in Nairobi, Mombasa and Nakuru. The scale of the alleged theft is staggering in both breadth and method.

    The most extensively documented instance centres on the Dupoto/Dafur Settlement Scheme in Embakasi, a 90-acre parcel situated between the Standard Gauge Railway alignment, the flight path and the boundary of Nairobi National Park. According to investigative disclosures, the scheme was carefully orchestrated: proxies were identified and issued title deeds to the public land, the land was then sold to the government for a Kenya Railways project at a fraudulently inflated price, and the compensation money was wired to bank accounts opened by those proxies before being withdrawn by the masterminds.

    Billions of shillings are alleged to have moved through this scheme. The Ethics and Anti-Corruption Commission attempted to investigate and was stopped, with sources attributing the interference to well-connected individuals within government circles.

    Earlier in Mainga’s tenure, accusations surfaced over the leasing of prime Kenya Railways facilities at Makongeni container yards in Nairobi for ten years without board approval, allegedly causing revenue losses exceeding Sh400 million.

    The Malaba godown occupied by Kristaline Salt Ltd was reportedly seized without cause in March 2018 and subsequently leased to a Mainga-favoured tenant, Multiple Solutions Ltd, exposing the corporation to a USD 10,315 claim plus general damages.

    Land at Limuru and Kikuyu stations is reported to have changed hands under circumstances that prompted investigations repeatedly stalled by powerful interests.

    Letters dated July 10, 2019, show Mainga indicating that the board at its 430th special meeting had recommended leasing of land to Kokotoni Investments Ltd and Mapset Maritime Ltd for 30 years, when sources contend the board approved no such thing.

    A legal notice from a senior official linked to the Qatar Chamber of Commerce alleges unfulfilled commitments in railway-linked real estate projects, a development that has damaged Kenya Railways’ credibility among foreign investors and generated concerns within international business circles about the reliability of commitments made by the corporation’s senior leadership.

    THE SGR FINANCIAL CATASTROPHE: SH28 BILLION LOST IN ONE YEAR

    Kenya Railways Corporation’s financial performance under Mainga presents one of the most damning indictments of state corporation management in recent Kenyan history.

    The Auditor-General’s report for the year ended June 2025 recorded a Sh28.17 billion loss, with the corporation operating with negative equity of Sh121 billion. Loan arrears tied to SGR financing have reached over Sh413 billion.

    The structural problem is the escrow arrangement under which all SGR revenues flow into a joint account managed by Kenya Railways and China Exim Bank, which requires a minimum balance of Sh25 billion before any surplus can be applied to loan servicing.

    That threshold has never been reached, meaning no loan repayments have flowed from SGR revenues, causing arrears to accumulate even as the line continues to generate income.

    The Auditor-General’s report for the year ended June 2024 separately found that failure to meet loan obligations when due had attracted avoidable expenditure of Sh34.1 billion in penalties amounting to Sh5.3 billion and interest of Sh28.85 billion, money that could have been directed to operations, maintenance or debt reduction.

    Kenya currently owes China Exim Bank 741 million dollars in principal, 222 million dollars in interest and 41 million dollars in penalties for the 2025-2026 fiscal year alone.

    The corporation spends more than one billion dollars per year servicing SGR debt to China. Critics have long argued that the terms of the SGR deal were structurally disadvantageous and that the escrow mechanism made it mathematically impossible for SGR revenues to service the loan, but those criticisms do not diminish the significance of a management record that has allowed avoidable penalties of over thirty-four billion shillings to accumulate on top of the principal obligation.

    Earlier figures were no less alarming. Kenya Railways reported Sh33.5 billion in losses for the year ended June 2023.

    The Afristar deal, the flawed management contract with Africa Star Railways for SGR operations that was initiated by Mainga himself and ran largely unchecked, was alleged to have cost the corporation up to Sh1.4 million daily in avoidable losses.

    THE RETIREES: 270 PEOPLE, 19 YEARS, SH21.9 MILLION

    Against the backdrop of billions allegedly lost to fraud, ghost compensation schemes and financial mismanagement, one figure strikes with particular moral force: 270 retired Kenya Railways employees have been waiting since 2006 for Sh21.9 million in benefits that sit, unclaimed, in a State Department of Transport account at the Central Bank of Kenya. No comprehensive beneficiary list exists. No payment has been made. The Auditor-General flagged the matter in the 2022-2023 financial year report. The Parliamentary Public Accounts Committee summoned Mainga in April 2025 to explain the delay. Committee members heard testimony that some of the retirees had fallen into depression and others had died in poverty while waiting for dues earned through decades of service.

    Separately, Kenya Railways faces a larger pension liability exceeding Sh2.26 billion owed to retirees under the Kenya Railways Staff Retirement Benefits Scheme. Mainga’s response before the Senate Labour Committee was to propose selling prime city assets, including Makongeni Estate valued at approximately Sh8 billion and Ngara Estate estimated between Sh8 billion and Sh10 billion, to generate the cash needed to stabilise pension payments. Critics found the irony difficult to absorb: land assets whose origins in some cases are themselves disputed, being proposed as the solution to a pension crisis that developed on the watch of the same management whose land dealings are under investigation.

    THE MURRAM SCANDAL, THE BACKDATED CONTRACTS AND THE PROCUREMENT TRAIL

    Beyond the Mace YMR LLP tender, Kenya Railways under Mainga has accumulated a significant archive of procurement irregularities. A Sh150 million tender for murram supply on the Nairobi-Nanyuki line rehabilitation is alleged to have bypassed open competitive bidding despite the value far exceeding the Sh30 million threshold for restricted tendering. Contracts worth Sh88.2 million to First Choice General Suppliers Limited and Sh34.5 million to Mosrach Limited were allegedly backdated, with work reportedly commencing before formal agreements were signed, a violation of fundamental procurement principles that the Auditor-General’s office has flagged repeatedly as an invitation to abuse and financial exposure.

    The Afristar contract deserves particular scrutiny in the context of the current Mace YMR LLP bribery allegations. Mainga himself initiated the Afristar deal, a contract that was subsequently found to have run unchecked and to have cost the corporation Sh1.4 million daily. The combination of contract initiation without adequate protective clauses, the subsequent absence of oversight mechanisms and the enormous daily losses that accrued follows a pattern that investigators say is now being replicated in the Nairobi Central Station tender, where behind-the-scenes negotiations allegedly designed the outcome before the formal evaluation process even concluded.

    THE ACCUMULATED RECORD: A CASE STUDY IN INSTITUTIONAL CAPTURE

    What distinguishes Mainga’s tenure from ordinary mismanagement is the systemic nature of the conduct alleged across multiple independent sources. From court records, parliamentary oversight proceedings, Auditor-General reports and investigative disclosures, a coherent picture emerges not of a poorly run institution but of a deliberately captured one.

    Procurement processes have allegedly been structured to deliver predetermined outcomes. Land transactions have allegedly been used to channel public assets to private beneficiaries. Court orders have been defied with a consistency that suggests institutional policy rather than individual error. Oversight institutions, including the EACC, the PSC and Parliament, have been navigated, delayed and in some cases frustrated. The renewal mechanism itself has allegedly been compromised through bribes to the very officials whose responsibility was to ensure integrity in the appointment process.

    The Public Service Commission’s reported investigation into Mainga’s 2023 term extension could be the thread that unravels the entire arrangement. If the extension is found to have been procured through corrupt payments to the former Transport CS and board members, it does not merely invalidate the tenure. It criminalises it. Every major decision taken under that invalid authority, including the Sh817 million Mace YMR LLP contract, becomes a procurement action taken by someone with no lawful mandate to bind the state. The legal exposure that creates is vast.

    For the Nairobi Railway City project and the UK Export Finance relationship, the reputational stakes are equally serious. British taxpayers’ money, channelled through UKEF guarantees, is ultimately underwriting a programme whose flagship contract may now be shown to have been awarded through bribery negotiations. The Foreign, Commonwealth and Development Office and UK Export Finance will have their own accountability questions to answer if investigations confirm what sources are alleging.

    WHAT HAPPENS NEXT: THE CONVERGENCE OF JUNE 15 AND JUNE 25

    Philip Mainga now faces two critical court dates within ten days of each other. On June 15, 2026, Justice Monica Mbaru will hear arguments on whether Masha Wario’s petition warrants conservatory orders that would immediately bar Mainga from exercising the functions of his office. If those orders are granted, Kenya Railways will be without an acting or substantive managing director at the precise moment when the Nairobi Central Station contract is due for execution, when ongoing Nairobi Railway City construction is proceeding and when the UK Export Finance framework is under scrutiny.

    On June 25, 2026, Mainga and Stanley Gitari will appear before Justice Oscar Angote for mitigation and sentencing in the Wamatangi-linked contempt case. A custodial sentence, even a brief one, would be unprecedented for a sitting state corporation chief executive in Kenya and would force the government’s hand on succession in a way that no petition alone has managed to do.

    Against these immediate pressures, the PSC inquiry into the 2023 extension continues, the EACC’s reported interest in the Mace YMR LLP bribery trail is developing, and the DCI faces renewed activist pressure to open a comprehensive investigation into all financial transactions conducted under Mainga’s tenure. The petition by Wario, layered on top of COFEK’s challenge, the Mwiti petition that failed on jurisdiction, the activist court filings, the whistleblower report, two contempt convictions, parliamentary summonses, Auditor-General flags and now bribery allegations tied to the corporation’s single biggest current procurement, collectively represent a dossier that Kenya’s oversight institutions can no longer plausibly ignore.

    The question is not whether Philip Mainga’s record is indefensible. By any objective measure, applied to any parastatal in any country that takes governance seriously, it is. The question is whether Kenya’s institutions, individually and collectively, have the will to act before the next Sh817 million contract is signed, the next court order is bulldozed and the next generation of retirees begins its own two-decade wait for money they were owed the moment they walked out of their offices for the last time.

  • UAE Consortium Eyes Massive Stake in Ksh28 Billion Nairobi Railway City Project

    UAE Consortium Eyes Massive Stake in Ksh28 Billion Nairobi Railway City Project

    A powerful investment delegation from the United Arab Emirates (UAE) has arrived in Nairobi, holding high-level discussions with Kenya Railways Corporation (KRC) over potential involvement in the ambitious Ksh28 billion Nairobi Railway City Project.

    In a statement released on Friday, October 31, KRC confirmed it met with representatives of the DECAEXEC Consortium, who presented a detailed proposal outlining how the group could become a strategic and institutional investor in the mega infrastructure venture.

    The talks mark a major step toward attracting international funding for the flagship project, which aims to reshape Nairobi’s central transport hub into a modern, world-class transit and business district.

    The Nairobi Railway City Project sits at the heart of Kenya’s urban modernization agenda, promising not only to enhance commuter experience but also to boost the country’s investment appeal, job creation, and tourism potential.

    UAE Consortium Eyes Massive Stake in Ksh28 Billion Nairobi Railway City Project
    If successful, the Nairobi Railway City Project will redefine Nairobi’s skyline, strengthen Kenya’s economy, and attract massive global investment opportunities. [Photo: Screenshot]

    Kenya Railways Engages UAE Investors in Landmark Nairobi Railway City Project Talks

    The Nairobi Railway City Project covers 425 acres of prime land bordered by Haile Selassie Avenue, Uhuru Highway, Landhies Road, and Bunyala Road. Once complete, the area will become a vibrant, multi-use urban district anchored around a new Central Railway Station.

    The project has been divided into six zones, each designed to serve a unique urban function. The DECAEXEC Consortium expressed strong interest in the Meetings, Incentives, Conferences and Exhibitions (MICE) precinct, a 69-acre section that will redefine Nairobi’s skyline and elevate it into an international business tourism hub.

    According to KRC, the consortium proposed a phased and sustainable investment model that would align with Kenya’s long-term economic development goals.

    “The MICE precinct is designed to attract global conferences, exhibitions, and investment summits, bringing thousands of visitors to Nairobi every year,” a KRC source told reporters.

    The MICE area will also integrate with the city’s transport system, including rail and road networks, ensuring easy accessibility for business travelers and daily commuters alike.

    A Modern Transport Hub at the Core of Development

    At the heart of the Nairobi Railway City Project will stand the new Nairobi Central Station, a two-storey, low-carbon structure designed for efficiency, sustainability, and user comfort.

    The ground floor will feature retail outlets, cafes, and restaurants, while the upper floor will house ticketing halls and direct access to train platforms. A large public square at the entrance will serve as a civic space for residents and visitors.

    According to the Nairobi Commuter Rail Master Plan, the station will initially handle 30,000 passengers per peak hour, with future capacity to move 1.5 million people daily across the commuter network.

    The project also includes plans to relocate the Central Bus Station to a site north of the railway area, easing congestion in the city center.

    Kenya Railways said the design aims to balance social and economic benefits, supporting small traders and commuters while delivering solid investment returns for stakeholders.

    Once operational, the facility is expected to boost Nairobi’s role as an East African transport and logistics hub, linking rail services to Jomo Kenyatta International Airport, which lies just 11 kilometers away.

    Economic and Social Benefits for Kenya

    The Nairobi Railway City Project is more than a transport modernization effort—it is an urban renewal initiative expected to create over 5,000 jobs during construction and operation.

    By integrating commercial spaces, hotels, and public parks, the project seeks to foster a safe, inclusive, and climate-resilient environment. The design follows principles from NIUPLAN, the Nairobi Integrated Urban Development Master Plan, ensuring alignment with global sustainability standards.

    Kenya’s partnership with the United Kingdom has been instrumental in driving the project from concept to design. However, the entry of UAE investors could accelerate funding, construction, and international partnerships that boost Kenya’s economic profile.

    Experts say the UAE’s involvement could also open doors for technology transfer, new tourism streams, and private-public collaborations in future infrastructure projects.

    “The presence of DECAEXEC in Nairobi signals growing global confidence in Kenya’s urban development pipeline,” said an industry analyst. “If the talks lead to a deal, Nairobi could become a model city for transport-driven growth in Africa.”

    Wrapping Up

    Cabinet approved the Nairobi Railway City Project in June 2025, with completion initially targeted for 2027. The meeting with the DECAEXEC Consortium suggests Kenya is exploring diversified investment streams to keep the project on track amid rising infrastructure costs.

    For Kenya Railways, the challenge will be ensuring that international partnerships remain transparent, environmentally responsible, and beneficial to local communities.

    With the UAE consortium showing strong interest and government support remaining firm, the Nairobi Railway City Project could soon shift from blueprint to groundbreaking—transforming how Kenyans travel, work, and connect.

  • Kenya Railways MD Philip Mainga: A Wanted Man Now On Activists’ Radar Facing Multiple Corruption Probes

    Kenya Railways MD Philip Mainga: A Wanted Man Now On Activists’ Radar Facing Multiple Corruption Probes

    Court activists demand comprehensive investigation into alleged financial mismanagement, land grabbing, and procurement irregularities

    Philip Mainga, the embattled Managing Director of Kenya Railways Corporation (KRC), finds himself at the center of mounting legal challenges as activists petition the High Court to compel anti-corruption agencies to launch comprehensive investigations into his conduct.

    Two prominent activists, Timothy Rasugu and Julius Chebitok, have moved to court seeking orders compelling the Ethics and Anti-Corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) to undertake thorough investigations into all financial transactions conducted during Mainga’s tenure at the helm of the state corporation.

    High Court Judge Lawrence Mugambi has directed the duo to serve Mainga with court documents as the case gains momentum.

    The activists’ petition paints a damning picture of alleged systematic corruption and financial mismanagement that has plagued Kenya Railways under Mainga’s leadership.

    Central to their case is the allegation that Mainga orchestrated a series of irregular procurement deals and questionable leasing arrangements, leading to massive financial losses.

    The most significant of these involves a Sh150 million tender for Murram supply in the Nairobi-Nanyuki railway rehabilitation project (Tender No. KR/SCM/FRC/003/2019-2020), which allegedly violated public procurement regulations through restricted bidding, bypassing the Sh30 million threshold set by regulations.

    Further investigation reveals that contracts worth Sh88.2 million to First Choice General Suppliers Limited and Sh34.5 million each to Mosrach Limited were backdated, with work commencing before formal agreements were signed.

    Adding to the complexity, recent reports indicate that the Sh88.2 million deal was allegedly given to a business controlled by Mainga’s long-term fiancée in what investigators describe as an improper process.

    Beyond procurement irregularities, Mainga faces serious allegations of land grabbing and illegal property dealings.

    The activists claim he has been involved in converting public land to private property, specifically alleging that he was involved in land grabbing at Kileleshwa, converting land belonging to the Corporation and building a private hotel.

    The petition further alleges that “The Respondent has also bought public land valued in millions of Kenya shillings in prime Machakos town and build Chocolate City hotel and Chocolate City Supermarket.”

    The activists want the National Land Commission to establish the ownership of land where Chocolate City bar, restaurant and supermarket sits, and determine whether the land was acquired lawfully.

    Under Mainga’s leadership, over 544 parcels of public land have allegedly been illegally allocated to private individuals, with senators demanding EACC arrest Mainga over alleged illegal property deals.

    Financial Hemorrhaging

    Perhaps most damaging to Mainga’s reputation is Kenya Railways’ catastrophic financial performance under his watch.

    Kenya Railways Corporation slumped into a Sh50.37 billion deficit in the financial year that ended June 2024, topping the list of State agencies whose operational costs outstripped revenues.

    This staggering loss has made Kenya Railways the worst-performing state corporation, dwarfing losses of other state entities including the National Health Insurance Fund (Sh3.4 billion), New Kenya Cooperative Creameries (Sh2.4 billion), and Nzoia Sugar (Sh1.1 billion).

    The financial crisis deepened following Kenya Railways’ default on a Sh3.5 billion loan, with the debt ballooning to Sh14 billion, including repayments and accrued charges.

    The SGR on-lent loan hit Sh737.5 billion in June, up from the Sh539 billion originally borrowed from the China Exim Bank.

    Procurement Scandals and Conflict of Interest

    The activists’ court filing highlights multiple procurement irregularities, including a controversial tender for general office stationery supply (Tender number KR/SCM/FRC/003/2023-2024).

    Internal sources allege irregular award of the tender to proxy companies associated with senior management at the state corporation, with an estimated Sh200 million potentially lost to beneficiaries.

    The petition accuses Kenya Railways of disregarding compliance with the Public Procurement and Asset Disposal Act, 2015, particularly Section 62 regarding “Declaration not to engage in corruption.”

    Leasing Irregularities

    Among the most significant allegations is Mainga’s involvement in illegal land leasing scandals.

    He is accused of leasing Makongeni Container Yards in Nairobi for 10 years without board approval, leading to over Sh400 million in lost revenue.

    Aside from procurement woes, Mainga is accused of overseeing what is now Kenya’s most financially crippled state corporation.

    KRC posted a staggering KSh 50.4 billion net loss this year—dwarfing losses posted by institutions like the NHIF, New KCC, and Nzoia Sugar.

    Despite government directives to slash spending on non-core activities, Kenya Railways failed to align with fiscal reforms.

    Matters worsened when an Auditor General’s report tabled in Parliament revealed that KRC defaulted on a KSh 3.5 billion loan, which has since ballooned to KSh 14 billion due to interest and penalties.

    In response to these allegations, High Court Judge Lawrence Mugambi has directed the petitioners to serve Mainga with all relevant court documents.

    The activists are also urging the Public Procurement Regulatory Authority (PPRA) to conduct a special audit into all procurement processes during Mainga’s tenure and have asked the court to order restitution for all lost public funds.

    Mainga’s term as Kenya Railways MD officially ended in February 2023, yet the Public Service Commission launched a probe into the secret extension of his term, raising questions about the legitimacy of his continued tenure.

    Additional allegations include appointing Benedict Kiema Kavua to a plum position after allegedly taking bribes in a sham recruitment exercise, further demonstrating the breadth of corruption allegations surrounding his leadership.

    What the Activists Seek

    The petitioners are seeking comprehensive relief from the court, including:

    – Orders compelling EACC and DCI to investigate all financial transactions during Mainga’s tenure
    – Direction for National Land Commission to establish ownership of disputed properties
    – Special audit by Public Procurement Regulatory Authority of all procurement processes
    – Restitution and recovery of all public funds lost through fraudulent deals
    – Implementation of governance and structural reforms within Kenya Railways

    The case against Mainga represents more than individual corruption allegations; it highlights systemic governance failures within Kenya’s state corporations.

    Despite government directives to cut costs on non-core activities such as travel, training, and overtime, KR reportedly failed to align its budget with the Kenya Kwanza administration’s fiscal priorities.

    As Kenya grapples with mounting public debt and calls for accountability in public service, the Mainga case has become a test of the country’s commitment to fighting corruption in state corporations.

    The outcome of these legal proceedings could set important precedents for how corruption cases involving senior public officials are handled.

    The High Court is expected to hear the matter in the coming weeks, with all eyes on whether the anti-corruption agencies will be compelled to take decisive action against one of Kenya’s most controversial state corporation chiefs.

  • Kenya Railways Announces Consultancy Services for Construction of Modern Railway Line in Nairobi

    Kenya Railways Announces Consultancy Services for Construction of Modern Railway Line in Nairobi

    Kenya Railways has launched a new phase in transforming urban transport by announcing consultancy services for a modern railway line in Nairobi.

    The plan is part of the Kenya Urban Mobility Improvement Project (KUMIP), funded by a Ksh86 billion World Bank loan.

    It aims to overhaul the Nairobi commuter rail system, integrate advanced digital infrastructure, and provide a sustainable solution to traffic congestion.

    The railway upgrade will extend beyond the city to benefit neighbouring counties, making it a significant step toward modern, efficient, and eco-friendly public transport.

    The modern railway line planned by Kenya Railways represents more than just tracks and trains. It is a bold attempt to solve Nairobi’s transport crisis through innovation, inclusion, and strategic partnerships. [Photo: Courtesy]

    Kenya Railways Moves Forward with Modern Railway Line under Urban Mobility Project

    Kenya Railways is seeking consulting firms to provide expert services for the upcoming modern railway line in Nairobi. The request for consultancy was officially announced on Tuesday, May 20, marking a critical milestone in the ambitious Kenya Urban Mobility Improvement Project.

    According to the agency, the consultancy phase will guide the implementation of a new commuter rail system, which will involve a comprehensive assessment of Kenya Railways’ Information Communication and Technology (ICT) infrastructure.

    The project is expected to improve the commuter experience in Nairobi by streamlining transport systems, adopting smart fare collection technologies, and creating a sustainable transport alternative to the city’s congested roads.

    Kenya Railways noted that interested consulting firms must have at least 15 years of experience in railway ICT operations and must have successfully completed three similar assignments in comparable environments.

    The consultancy services will involve:

    • A full evaluation of existing ICT systems and infrastructure
    • A gap analysis of technology and policies currently in place
    • Development of a digital and commuter master plan
    • Alignment of Kenya Railways’ digital infrastructure with global best practices

    In addition, the selected firm will be responsible for holding a national stakeholder engagement workshop. The forum will give Kenyans a platform to give feedback on the design and goals of the new commuter railway.

    This step is vital to ensure the project serves the real needs of the public and is implemented transparently.

    World Bank Funds to Drive Modern Urban Transport Vision

    The consultancy announcement follows a major funding deal secured last year. In October, the World Bank committed Ksh86 billion for the Kenya Urban Mobility Improvement Project, signalling strong international support for Kenya’s transport overhaul.

    Part of the funds will go towards building a 58-kilometre modern railway line designed to carry thousands of passengers each day. Transport Cabinet Secretary Davis Chirchir emphasized the importance of the new line during a press briefing on October 8, 2024.

    “This project will decongest Nairobi roads and offer a safe, fast, and affordable alternative for daily commuters. It’s a major shift in how we move people,” Chirchir said.

    The rail line will make use of a vast 425-acre piece of land within Nairobi’s Central Business District (CBD). Most of the land belongs to Kenya Railways and has been underutilised for years. This makes the project not only cost-effective but also strategically placed to serve city dwellers and those coming from surrounding regions.

    The project will benefit commuters in Kiambu, Kajiado, Murang’a, and Machakos counties, with completion expected by 2030.

    Smart Technology and Public Inclusion at the Heart of the Project

    Unlike previous rail projects, planners design the new modern railway line around cutting-edge technology and commuter needs.
    Kenya Railways is placing strong emphasis on creating a digital ecosystem that simplifies fare payment, ensures security, and improves customer experience.

    The consulting firm chosen will play a key role in shaping this digital backbone. A major task will be to develop a state-of-the-art fare collection system that is efficient, transparent, and easy for commuters to use.

    This will reduce leakages, boost revenue, and eliminate the frustrations of long queues and cash-based transactions.

    The requirement to host a national stakeholder workshop reflects the government’s aim to make the project inclusive. Commuters, civil society, businesses, and experts will have a chance to weigh in on the planning process.

    Kenya Railways believes that incorporating public views will create a sense of ownership and ensure the railway line truly meets commuter needs.