NAIROBI, Kenya, Mar 15 – The government has so far managed to take over operations at the Standard Gauge Railway (SGR) from the Chinese government by 90 percent.
The Kenya Railways Managing Director Philip Mainga revealed that the corporation has been working in earnest to fully recover operations of the SGR by the next financial year.
Mainga made the revelations before the Public Investment Committee on Commercial Affairs and Energy where he appeared for a grilling.
“We have taken over the operations of SGR we are now at 90 percent. In terms of the operations we believe that in the next financial year, we will have a comfortable report,” said Mainga.
The Railway Corporation has been projecting an upward trajectory in reducing operation losses and liabilities since the financial year 2018/2019.
The Auditor General Report indicated that the losses had dropped from Sh9.8 billion to Sh4.4 billion in the financial year 2020/2021.
The KRC MD attributed that the reduction of liabilities has been precipitated by the 90 percent takeover of the SGR.
Mainga told the Members of Parliament (MPs) that 90 per cent of the SGR revenue is from cargo and 10 per cent from passengers with 2.3 million passengers travelling by the Railway yearly.
The MPs were however dissatisfied with the operations of SGR which they said was shrouded with secrecy.
Ugunja MP Opiyo Wandayi expressed that the SGR contract should be made public to unearth details over the management of the Railway.
“Is it possible that you can help this committee to understand better this SGR issue. They were attempts to make the contract public which turned out to be protective.”
“We need to be served with the original SGR contract for us to undertake deeper scrutiny, “said Wandayi.
Mainga however disappointed the lawmakers by stating they were not in the ownership of the SGR contract despite them taking over the operations.
“I just want to say humbly that I am not in possession of this contract and therefore I can’t promise to give it,” he stated.
Last year, Roads, Transport and Public Works Cabinet Secretary Kipchumba Murkomen, made public contract details of the Standard Gauge Railway (SGR) that cost taxpayers Sh670 billion.
The release of the contracts came nearly four years after speculations emerged that Kenya had staked its valuable Mombasa Port as collateral for the railway loans.
Reactions however emerged that the SGR contract disclosure was selective on the actual details of the contract.
The 700-km railway runs from the port of Mombasa through Nairobi to Naivasha.
It has been dogged by controversy from the start of procurement, its massive cost, and the government’s reluctance to allow detailed scrutiny of the contracts.
