Kenya has revived proposals to build a modern railway line after initial plans three years ago were shelved, owing to financial constraints and procurement controversies.

Complaints from the business community that high transport costs are affecting the country’s competitiveness have forced the Kenya government to resurrect plans to construct a standard-gauge railway line from the coastal city of Mombasa to the Ugandan border, in Malaba, with a branch line to Kisumu.

Since it has become apparent that Rift Valley Railways (RVR), the private company that is operating the century- plus-old Mombasa–Kampala Lunatic Express, will be unable to modernise the existing line to cater for growing transportation needs, Kenya has now prioritised the construction of a new parallel line at a cost of $5.2-billion.

While unveiling the 2013/14 Budget, Cabinet Secretary for the National Treasury Henry Rotich allocated $252.8-billion for the project. The new railway line is expected to improve turnaround times and reduce the cost of transporting freight from Mombasa to Kisumu by as much as 79%.

Recently, Uganda announced it intended to build a standard-gauge line from Kampala to link with the Kenyan line in Malaba.
The Mombasa–Malaba rail project will involve the development of a modern high-capacity standard-gauge railway line for passengers and freight capable of attaining speeds of 180 k/h and 120 k/h respectively. The project will be overseen by the Kenya Railway Corporation and is slated for completion in 2017.

China Roads & Bridges Company has been contracted to undertake the project and intends to fast-track the hiring of consultants who will be responsible for design and environmental- and social- impact assessment services.

Three years ago, the procurement process for consultants was twice cancelled, owing to the flouting of rules and allegations of corruption.

Construction of the high-speed line is seen as critical in lowering transport costs and boosting trade with neighbouring countries, which largely depend on the Port of Mombasa for their exports and imports.

Currently, these countries use the 1-m-gauge line from Mombasa to Kampala. Despite the line being concessioned to RVR in 2006, it has achieved little in facilitating transportation in the region.

A report by the Joint Railway Commission, a body set up by the governments of Kenya and Uganda to oversee the performance of RVR, states that the company is underperforming on most of the parameters set out in the 25-year concession.
For instance, RVR managed to transport a mere 1.9-million tons of cargo in 2012, compared with the about 12-million tons arriving at the Port of Mombasa.

This means that about 90% of the cargo arriving at the port that is destined for Uganda, South Sudan, Rwanda, Burundi and parts of the Democratic Republic of Congo is transported by road.