This archive report was first published on 14 July 2019.
Published on July 14, 2019, a report by Nation revealed a massive fraud in ticketing on the SGR, with billions of shillings going to individuals in one of the many scandals plaguing Kenya's largest infrastructure project.
Kenya Railways Corporation (KRC) has written to the Chinese operators, demanding to take over the ticketing system and curb revenue leakages. The current arrangement allows the Chinese operator to bank collections and file returns, leaving KRC in the dark while still demanding billions from taxpayers.
Investigations into the fraud have been hindered by the Chinese Corporation's unresponsiveness to formal engagements on the issue. A report by KRC's board chairman recommended that the corporation put in place a system to interact with the operator's ticketing system for monitoring and reconciliation on a daily basis.
Several employees of Africa Star, including Chinese and Kenyans, were arrested in November last year and charged with trying to bribe detectives investigating the scam. The scheme involved manipulating the booking system, splitting revenues with the operator, and creating fraudulent refunds for tickets already issued to passengers.
