Ruto To Split Kenya Railways Into Three
The resolution was reached by the Cabinet following its meeting chaired by President Ruto at Nakuru State Lodge on Monday, January 15.
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President William Ruto has given the green light for the Railway Amendment Bill 2024 which aims to divide the Kenya Railways Corporation (KRC) into three sections.
The resolution was reached by the Cabinet following its meeting chaired by President Ruto at Nakuru State Lodge on Monday, January 15.
In the despatch to newsrooms, Cabinet explained that this would help give Kenya a competitive edge in the East African region and enhance efficiency.
Kenya Railways station at Dandora, Nairobi. /FILE
"To fortify Kenya as a regional logistics hub, the Cabinet approved the Railway Amendment Bill 2024 that aims at initiating new ways of running railways and separating the business of freight, commuter and land development," the despatch read in part.
The Cabinet further argued that Kenya Railways owns large tracts of land in the country, most of which has been unutilised, thus the move aims to clear the way for the development of railway cities as is the case currently in Nairobi.
"Kenya Railways is a big landowner in Kenya and most of the land is lying idle. This will be used to develop railway cities as is happening in Nairobi and will be extended to other major towns.
"The Bill proposes that the private sector, investors and even county governments run the railway cities. In such cases, Kenya Railways will become a regulator," added the despatch.
The Nairobi Railway City Project, a visionary initiative, seeks to create a world-class, integrated railway network in the heart of Nairobi.
It aims to enhance connectivity, ease traffic congestion, and provide a more convenient and sustainable transportation system for the city's residents.
Additionally, the Railway City project will expand the CBD to the South by setting up key services and facilities to attract entrepreneurs.
It will also transform the area around Nairobi Central Railway Station into a modern Railway City, provide a sustainable urban space and create a Transport Hub with Multi-modal Transport Facilities.
Through a Public Private Partnership (PPP), the United Kingdom (UK) government will fund the project at an estimated cost of Ksh30 billion.
Other major cities and towns which could see the development of their own railway cities include Mombasa, Athi River, Naivasha and Kisumu, however handing over thousands of acres of prime land to the private sector for the development of the cities could raise fears of land grabbing.
Notably, prior to the green-lighted proposal, President Ruto on Monday, January 8 revoked the appointment of four members of the Kenya Railways Corporation Board of Directors who served under the administration of former President Uhuru Kenyatta.
“In exercise of the powers conferred by section 7 (3) of the State Corporations Act, I, William Samoei Ruto, President of the Republic of Kenya and Commander-in-Chief of the Defence Forces, revokes the appointment of— Mohammed Alawi Hussun, Dennis Aroka, Catherine Musakali, Sumaiya Salim Mohamed, as members of the Board of Directors of the Kenya Railways Corporation,” the Gazette notice read in part.
The Head of State did not however announce the replacements of the four sacked board members.
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