Kenya Railways Corporation (KRC) will take over SGR operations by June 2025. This aims to reduce high operational costs. Kenya Railways Corporation (KRC) will also take the SGR from the Chinese company Africa Star Railway Operation Company (Afristar).
Philip Mainga, KRC’s managing director, said KRC now controls 90% of SGR functions. KRC has scheduled the final handover for December 31, 2025. KRC is also working to do this process to complete the takeover by June 2025.
Originally, the transition was expected to be finalized by May 2022. KRC is now on track to assume control of the signaling function by December this year. This will also decrease its dependence on Afristar to around 6%.
KRC will assume control of signaling by December this year. This will reduce Afristar’s involvement to 6%. “The system is now managed by Kenyans, with 87% localization,” said Mainga. This figure will also improve after December.
KRC aims to complete the takeover by June 2025. Extensive training is also necessary for Kenyan staff. It has integrated 962 staff from Afristar and expects an additional 150 staff by year-end.
KRC inherited 1,280 employees from Rift Valley Railways. “The payroll size is within our 30% target,” Mainga said. This move also follows years of financial losses in the railway sector. The government decided to concession rail services.
This move follows years of financial losses in the railway sector, prompting the government to concession freight and also passenger services and amend the KRC Act to permit rail service provision through concession.
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