Senators Demand EACC Arrest Kenya Railways MD Philip Mainga Over Alleged Illegal Property Deals

In a significant development, Kenyan senators have called upon the Ethics and Anti-Corruption Commission (EACC) to arrest Kenya Railways Managing Director, Philip Mainga, over allegations of unauthorized sale and leasing of Kenya Railways properties. The legislators accuse Mainga of engaging in corrupt practices that have led to substantial financial losses for the state corporation.

Allegations of Unauthorized Leases and Sales

Reports indicate that under Mainga’s leadership, Kenya Railways has been embroiled in a series of questionable transactions involving prime parcels of land. Notably, in Mombasa’s Shimanzi area, three prime parcels reserved for the corporation’s expansion were allegedly grabbed and sold to private developers. Investigations revealed that these properties, valued at over KSh 100 million, were fraudulently transferred through forged documents and misrepresentation, insinuating that Kenya Railways had surrendered the land to the government. One parcel was reportedly sold for KSh 58.2 million and earmarked for a grain handling terminal.

Further allegations suggest that Mainga unilaterally leased container yards and buildings at Makongeni, Nairobi, for a decade without proper internal procedures or board approval. This decision reportedly resulted in Kenya Railways losing over KSh 400 million in storage and container transport charges. Additionally, Mainga is accused of leasing land in Thika and along Bunyala Road in Nairobi without necessary approvals, raising concerns about transparency and potential conflicts with current or future railway operations.

Senators Demand Accountability

The senators’ call for Mainga’s arrest stems from these and other allegations of mismanagement and corruption within Kenya Railways. They argue that such actions have not only deprived the corporation of vital revenue but also undermined public trust in state institutions. The legislators emphasize the need for thorough investigations and accountability to deter similar misconduct in the future.

EACC’s Role and Potential Actions

The EACC, mandated to combat corruption and economic crimes in Kenya, is expected to take up the matter following the senators’ appeal. If the commission finds sufficient evidence supporting the allegations, it could lead to the arrest and prosecution of those involved, including MD Philip Mainga. Such actions would signal a robust stance against corruption and reinforce the government’s commitment to upholding integrity within public institutions.

Impact on Kenya Railways and Public Trust

The alleged mismanagement and unauthorized transactions have reportedly resulted in significant financial losses for Kenya Railways, turning it into a burden on taxpayers. A Treasury report revealed that in the year ending June 2023, the corporation recorded losses amounting to KSh 33.5 billion. These developments have eroded public trust and raised questions about the stewardship of critical state assets. Addressing these issues transparently and holding those responsible accountable is essential to restore confidence in Kenya’s public institutions.

As the situation unfolds, stakeholders and the public await the EACC’s response and the subsequent legal proceedings that may arise from these serious allegations.