Cabinet Approves Bill to Split Kenya Railways

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The Railway Amendment Bill 2024 was adopted by the Cabinet on Monday, January 15, 2024, clearing the path for the division of Kenya Railways into three different corporations.

This decision is intended to enhance Kenya’s competitiveness in the East African region and improve the efficiency of railway operations.

“To fortify Kenya as a regional logistics hub, the Cabinet approved the Railway Amendment Bill 2024 that aims at initiating new ways of running railways and separating the business of freight, commuter, and land development,” a Cabinet dispatch revealed.

The restructuring plan also includes the development of railway cities across the country, utilizing the currently idle land owned by Kenya Railways.

The bill proposes involving the private sector, investors, and county governments in the management of these cities, with Kenya Railways transitioning into a regulatory role.

“The Bill proposes that the private sector, investors, and even county governments run the railway cities. In such cases, Kenya Railways will become a regulator,” the Cabinet dispatch explained.

The ambitious Nairobi Railway City project, which began construction in 2023, is a prime example of this initiative. “With the approval of the Railway Amendment Bill 2024, we aim to replicate the success of the Nairobi Railway City in other parts of the country where the railway line passes through,” President Ruto stated.

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