Kenya Railways Managing Director Phillip Mainga on Wednesday, March 15, revealed that the corporation had completed a 90 per cent takeover of Standard Gauge Railways (SGR) operations.
While appearing before the National Assembly Committee of Public Investments, Mainga noted that the company was projected to have completed the takeover of SGR's entire operations by 2024.
“We are at 90 per cent takeover of SGR. We hope to have taken over operations completely by the next financial year,” the MD told the committee chaired by Pokot South MP David Pkosing.
In addition, the Kenya Railways boss affirmed that the corporation had shown prospects of recovering from perennial losses.
He explained that the corporation's losses fell to Ksh4 billion in the 2022/2023 financial year, which was an improvement from the previous year when the company struggled with high operating costs.
The revelation came a year after the corporation announced plans to initiate the takeover of Madaraka Express operations.
In 2021, Kenya Railways announced that it had assumed the roles of ticketing, security, and managing all systems relating to its operations.
AfriStar, a subsidiary of the China Road and Bridge Company, had been accorded the rights to control operations of the Railway under the contract signed by the government.
Initially, AfriStar was contracted to run the railway service for ten years beginning in 2017. However, Kenya Railways renegotiated the terms and commenced the process of a gradual takeover.
The takeover rate was, however, overdue, as earlier projections had shown that Kenya would have assumed a 100 per cent takeover by May 2022.
The MD further defended the economic viability of the Nairobi Commuter Railway, which shuttles through various estates in Nairobi.
“Railway service in most developed and developing countries is a socio-responsibility mandate. If we charge prices similar to those of market rates, then the commuter of Kibera, Dandora and Pipeline settlements won’t be able to afford them," he explained.
