Kenya Railways MD Faces Court Battle Over Corruption and Mismanagement Allegations

By Harry Mwakazi

Nairobi’s Milimani High Court has set the stage for a legal confrontation, issuing orders requiring responses in a petition leveled against Philip Mainga, the Managing Director of Kenya Railways Corporation (KRC).

The legal action stems from serious allegations of corruption, financial mismanagement and ethical breaches.

Matasi Yatundu, a concerned citizen and advocate for good governance, has brought forth the petition, citing what he claims are numerous violations of Kenya’s Constitution and associated laws, including the Leadership and Integrity Act and the Public Officer Ethics Act.

The core of Yatundu’s petition centers on claims of substantial financial losses within KRC, attributing these losses to irregular procurement practices and a lack of accountability.

Furthermore, the petition highlights reports of KRC facing a significant financial penalty due to defaulting on the Standard Gauge Railway (SGR) loan. Adding to the gravity of the situation are accusations concerning KRC’s dealings with international investors.

It is alleged that the corporation lured foreign companies with promises of land development, only to subject them to frustrating delays and broken commitments, ultimately leading to international legal disputes. A specific instance involves a legal notice sent on behalf of a high ranking member of the Qatar chamber of commerce, regarding unfulfilled real estate promises.

Further issues are raised regarding alleged irregularities in land leasing, particularly within the Nairobi Railway City development and SGR station areas. The petition claims that these leasing actions occurred despite ongoing development plans.

Accusations of financial improprieties also surfaced regarding dealings with companies like Autoports Freight Terminals Ltd, with claims of large financial losses due to irregular practices.

In response, Honorable Justice E.C. Mwita has ordered that all involved parties be served with the pleadings, with a 14-day window for responses.

A subsequent hearing to give directions on the case has been scheduled for March 31, 2025.

The Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and the Assets Recovery Agency (ARA) have been named as interested parties in the case.