Activists Seek to Oust Kenya Railways MD Over Corruption, Financial Losses
They indicate that Mainga has been involved in a series of land grabs belonging to the KRC, converting to his private property and violating procurement regulations for his benefit.
Two Human Rights activists have filed a petition before the High Court seeking an order to declare the Kenya Railways Corporation (KRC) Managing Director Philip Mainga unfit to lead the company or hold any public office for gross misconduct.
This comes when the company has recorded a significant financial loss with reports indicating that it has incurred a deficit of Ksh 50.4 million in the financial year ending June 2024, and becoming the top state agency whose operational costs outstripped revenues forcing it to rely on exchequer.
According to the documents filed before the court, the crisis took a sharper turn following an audit report by the Auditor general which revealed that KRC had defaulted on a Ksh 3.5 billion loan. The report that was tabled before the Parliament, accused KRC of taking on unnecessary debts with little to show for it in terms of returns.
The activists Timothy Rasugu and Julius Chebiitok have presented before the court overwhelming illegalities, irregularities, and circumvention of the law that they alleged had been done by Mainga.
They indicate that Mainga has been involved in a series of land grabs belonging to the KRC, converting to his private property and violating procurement regulations for his benefit.
The petitioners allege that in Kileleshwa, Mainga has grabbed the company’s land and built a private hotel, Chocolate City bar, and restaurant. They have also pointed out that in Machakos town, he bought a public land where he developed by building a hotel and a supermarket.
A deal with a Chinese company Africa Star Railway (Afristar) the company that was contracted to operate the Standard Gauge Railway (SGR) has been pointed out by the petitioners as the main source of financial hemorrhage for KRC due to the unchecked execution of the deal where the company was losing Ksh 1.4 million daily.
Petitioners aver that Similar irregularities are cited in the Nairobi Railway City and SGR station areas, where leasing proceeded despite ongoing development plans. They indicated that Athi River Logistics Hub, where Grain Bulk Handling Limited (GBHL), a company linked to Mombasa tycoon Mohamed Jaffer was allocated 50 acres but allegedly encroached 62 acres blocking the SGR access road.
KRC is accused of adding Kenya’s reputational and financial burdens abroad after being accused of misleading investors with fulfilled land development promises, sparking legal disputes “a legal notice from a senior Qatar Chamber of Commerce member highlights one such Brocken commitment.”
They also allege that Mainga conned Asian contractors in the Ksh 8 billion Rieuta Meter Gauge Railway project where some of the Asians have reached out to the office of the Ombudsman over him making an official complaint for swindling millions of shillings as kickbacks for the tender.
The respondents have indicated that Mainga has violated the professional and statutory codes that a public officer in the public service shall be bound by.
They further indicated that the director has been on the spot over the irregular allocation of hundreds of acres of land belonging to the company to individuals and companies through questionable leases in the past few years.
According to the report that was handed to the EACC in 2023, by a whistleblower says that Mainga caused the loss of Ksh 400 million to the company through the leasing of its land in Makongeni, Nairobi. He is also accused of approving the lease of five acres of its land to Harvest International for 15 years on October 2, 2018, where he claimed the company’s board had approved the same during the meeting.
Other beneficiaries of illegal subdivisions and leases are Sieani Estate in Nakuru, Sleeper Press Land, Athi River Logistics Hub and the Nairobi South Hub, Kokotoni Investment, Mapset Maritime Ltd, and Multiple Solutions Limited.
The Dupoto Settlement Scheme case has been quoted by the petitioners as the latest in a series of questionable dealings within the corporation. They alleged the company has irregularly allocated more than 544 parcels of land to individuals.
The petitioners urged the court to issue a permanent order prohibiting Mainga from holding his office pending the hearing and determination of the suit.
The court directed the respondent to file their response in a week’s time and the mention scheduled on July 15, 2025, for directions.
