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Bill to open up private sector investments in railway transport

The Kenya Railways Amendment Bill 2024 will break the monopoly in management, opening up the country for private investors to build and operate railway transport.

In Summary

•According to the bill, Kenya Railways will be divided into three distinct entities: regulation, construction and operations.

•Currently, Kenya Railways performs all three functions.

A train locomotive at the Nairobi Central Railway Station.
A train locomotive at the Nairobi Central Railway Station.
Image: FILE

Kenya's railway transport system is set for a major revolution if a bill developed by the Ministry of Transport is adopted.

The Kenya Railways Amendment Bill 2024 will break the monopoly in management, opening up the country for private investors to build and operate railway transport.

According to the bill, Kenya Railways will be divided into three distinct entities: regulation, construction and operations.

Currently, Kenya Railways performs all three functions. 

The new bill will attract investors to pump resources into the construction and operation of railway transport.

If the bill is passed, private firms will construct and operate railway lines to enhance efficiency and coverage.

Senior Assistant Director in the Department of Roads and Rail, Wendy Maina, said the Bill has been harmonised with regional laws to open up railway transport.

Maina said the review was necessitated by technological advancements and the need to separate functions of Kenya Railways to enhance efficiency and service delivery.

Through the new Bill, an oversight body shall be established to regulate the public and private players in the sector.

A  strong accident investigations team will also be established to enhance safety.

Maina said the SGR from Mombasa to Naivasha and the metre gauge line from Mombasa to Malaba will remain the property of Kenya Railways.

Investors keen to take up railway transport will conduct feasibility studies upon which they will secure the necessary approvals and land to construct their lines.

The team will conduct a similar drive in Malaba, Kitale, Lodwar, Eldoret and Nakuru.

Other teams from the Ministry will cover the northern and coastal regions before the bill is forwarded to the cabinet for approval in two weeks.

 

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