Kenya Railways Boss Philip Mainga Faces Tough End to 2024 Amid Mounting Losses and Debt Crisis
Kenya Railways, once a symbol of colonial ambition and infrastructure, now finds itself at the center of financial scrutiny as 2024 draws to a close. The railway, originally built between 1896 and 1901 to connect Mombasa to Kisumu, has become a reflection of its colonial past — a tool for resource extraction, albeit now in the context of public debt and questionable financial management.
Under the leadership of Managing Director Philip Mainga, Kenya Railways has been spotlighted for its dismal financial performance and mounting debt. The corporation posted a staggering net loss of Sh50.4 billion this year, making it the worst-performing state corporation. This loss dwarfs those of other state entities, including the National Health Insurance Fund (Sh3.4 billion), New Kenya Cooperative Creameries (Sh2.4 billion), and Nzoia Sugar (Sh1.1 billion).
The financial turmoil has prompted renewed criticism of Kenya Railways’ spending habits. Despite a government directive to cut costs on non-core activities such as travel, training, and overtime, Kenya Railways has reportedly failed to align its budget with the Kenya Kwanza administration’s fiscal priorities. While other agencies in the energy sector reported improved financial outcomes, Kenya Railways’ financial woes have only deepened.
The crisis took a sharper turn following an audit report by the Auditor General, which revealed that Kenya Railways had defaulted on a Sh3.5 billion loan. The default has resulted in the debt ballooning to Sh14 billion, including repayments and accrued charges. The report, tabled in Parliament, accused Kenya Railway of taking on unnecessary debts with little to show for it in terms of returns. This revelation has placed Mainga and other key officials under the parliamentary spotlight, with grilling sessions expected to begin in February next year.
Kenya’s broader public sector has also faced financial challenges, with state-owned enterprises struggling to remain profitable. The cumulative profits from state commercial entities dropped from Sh63 billion to Sh41 billion, reflecting a general decline in performance. However, Kenya Railways stands out as the most troubled, drawing public attention and raising questions about accountability under Mainga’s leadership.
As 2024 ends, the future of Kenya Railways and its leadership hangs in the balance. The pressure from Parliament, the Treasury, and the Auditor General may signal a reckoning for the state corporation. For Philip Mainga, the year-end is marked not by progress but by growing scrutiny over his management of one of Kenya’s most iconic institutions.
