KR Ends 25 Year Rail Concession Contract

Platform 2The Corporation has terminated the 25-year contract that it signed with the Rift Valley Railways (RVR) Kenya. The Concession Agreement, which was signed on January 23, 2006, was to run until the year 2031. However, the termination was effected following RVR’s failure to meet set operating targets and agreements.

Kenya Railways issued a termination notice to end the concession to Rift Valley Railways following discussions to resolve the disputes. A joint committee between KR and RVR was formed to attend to stakeholders and ensure minimal disruption of services during the transition period.

KR and RVR have committed to ensure a smooth transition that entails a smooth hand back of operations and transfer of assets. The firms will attend to all pending and emerging issues to ensure minimal disruption to services. The firms have also endeavored to ensure there will be minimal adverse economic and social impact during this transition period.