Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

RVR to inject Sh2b in troubled firm

NAIROBI August 7 – Players in the railway industry from Kenya and Uganda have resolved that the Rift Valley Railways should submit a comprehensive investment plan to the two governments by August 15.

Speaking Wednesday after a meeting that brought together international financiers and players in the transport industry, Prime Minister Raila Odinga said the stakeholders resolved that shareholders in the concessionaire would be required to inject a fresh capital of not less than Sh2.6 billion between August 31 and October 31.

“It has become very clear that the concession is not working and is causing harm to the economies of Uganda, Rwanda, Burundi DRC and Sudan,” said Odinga.

“This situation is completely untenable and unacceptable to the two governments and therefore a quick solution ought to be found.”

Odinga said the previous concessionaire that allowed the lead company to own 35 percent stake in the railway transport had been scrapped to allow other shareholders a chance to invest more in the industry.

Similarly, the PM said the five-year period given to the lead investor to maintain a 35 percent shareholding would be reduced to the current time and clear timelines to be set for the implementation of the agreed measures.

The PM noted that all aspects of the concession agreement would be reviewed including removing any limitations prohibiting the construction of a parallel railway line.

“The two governments will be at liberty to proceed and undertake a feasibility study for the construction of a new line,” he said.

Concerning the change in the management, the PM said both governments did welcome the new team in the management of RVR and hope to achieve good results within 90 days.

Advertisement. Scroll to continue reading.

However, the PM said the new capital would be committed to the capital expenditure noting that the resolutions would not act as a waiver of the rights of the parties under the concession

He said that the stakeholders had agreed that additional funds that may be required under the investment plan would be provided by PME Africa Infrastructure Opportunities Plc (PME).

He revealed that KFW and International Finance Corporation (IFC) have pledged to advance the remainder of the funds in due course.

Other stakeholders present included the Bobcock &Brown Ltd, Prime Fuels, KFW Germany, Centum Capital, Auros Capital, Prime Capital and Tran’s century.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...