Kenya Railways to take over SGR operations from Chinese firm
News
By
Sara Okuoro
| Mar 04, 2021
Kenya Railways Corporation (KRC) has begun the process of taking over the operations of Standard Gauge Railway (SGR) from the Chinese operator- Afristar.
The corporation has already assumed ticketing, security and fuelling functions of the Standard Gauge Railways (SGR) and expects to complete the takeover by May next year, Kenya Railways Chairman Omudho Awitta said on Thursday.
“We have negotiated with the contractor so that we take over the running of the standard gauge railway. The first phase has started, we have taken over the security, ticketing and fueling of the trains. These phases will go on smoothly up to May 2022 when we take overall operations,” said Awitta.
“Instead of the 10 years, we are taking over in five years. we are prepared for it and we are ready to go,” he said.
READ MORE
Kingdom Bank deepens MSME push with Industrial Area branch
Court declines to lift orders blocking Safaricom sale as Vodafone loses bid to exit case
Kenya blockchain industry urges faster stablecoin adoption amid new digital asset rules
Activist files petition to block fuel price hike, seeks conservatory orders
Government launches construction of 114 solar mini grids in 14 counties
Kenya's cybersecurity skills gap persists despite training efforts
Ruto's budget limbo deepens as IMF digs in on bailout conditions
German 'chemical town' fears impact of industrial decline
In 2017, KRC contracted Africa Star Railways (Afristar), a subsidiary company of China Road and Bridge Corporation, to manage SGR operations and maintenance.
The operator would be in control of passenger ticketing and revenue collection. KRC marketed the service at its own cost to find customers. The corporation, however, was excluded from collecting revenues from sales.
Earlier last year, the ticketing operations were riddled with scandals where Afristar, the Chinese operator of the SGR line, was accused of running largely unchecked operations where train cabins would routinely be artificially fully booked.
As a result, the Nairobi-Mombasa passenger train service appeared almost always packed – a situation chalked up to Kenyans’ excitement to ride the train – only for agents to later sell the tickets to desperate travellers at premium rates.
MOST READ
- Court declines to lift orders blocking Safaricom sale as Vodafone loses bid to exit case
BUSINESS
- Kenya blockchain industry urges faster stablecoin adoption amid new digital asset rules
ENTERPRISE
By Juliet Omelo
- Activist files petition to block fuel price hike, seeks conservatory orders
BUSINESS
By David Njaaga