Kenya Railways MD Mainga in multi-million locomotive deal with Uganda

Philip Mainga, the Managing Director of Kenya Railways Corporation (KRC), is embroiled in controversy over a proposed deal to lease locomotives to Uganda Railways Corporation (URC). The deal, worth approximately $22 million (Shs80 billion), involves leasing four locomotives for 10 years. However, concerns have been raised about the economics behind the deal and potential waste of taxpayer funds.

Key Details of the Deal:

• Lease Terms: The proposed lease fee is $2,500 per day per locomotive, translating to $7,500 per day for three locomotives.
• Purpose: URC aims to address its locomotive shortage and support cargo transport growth.
• Contract Duration: The lease agreement would last for 10 years.

Controversy Surrounding the Deal:

• Economic Justification: Questions have been raised about the economic viability of the deal and whether leasing locomotives is the best option for URC.
• Potential Waste: Concerns exist about potential waste of taxpayer funds and the impact on URC’s financial sustainability ¹.

It’s worth noting that Philip Mainga is already facing multiple corruption probes and allegations of financial mismanagement within Kenya Railways. Activists have petitioned the High Court to compel anti-corruption agencies to investigate Mainga’s conduct, citing irregular procurement deals and questionable leasing arrangements that led to massive financial losses ².