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Kenya Railways Embroiled in Battle for Control of SGR Billions with Chinese Operator

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 15 July 2019.

Published on July 15, 2019, Kenya Railways Corporation (KRC) is embroiled in a high-stakes battle for control of Standard Gauge Railway (SGR) billions with a Chinese operator.

The dispute centers around revenue collection duties for the Madaraka Express passenger train, which is operated by a Chinese company.

According to reports, KRC is seeking to take over the ticketing system to curb revenue leakages, which allegedly involve manipulating the booking system and sharing revenues with the operator.

The scheme, which reportedly saw the cartel illegally pocket Sh1 million per day, also involved creating fraudulent refunds for tickets already given to passengers on board.

Investigations into the scandal hit a dead end after the China Road and Bridges Corporation reportedly remained unresponsive to KRC's formal engagements on the matter.

As reported by Sunday Nation, KRC is seeking to "put in place a system that interacts with the operator’s ticketing system for purposes of monitoring and reconciliations on a daily basis.”

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