Reprieve for RVR as court extends order shielding its concession

By Evelyn Kwamboka

An order barring the Government from cancelling its concession agreement with Rift Valley Railways (Kenya) Ltd has been extended.

High Court Judge Joseph Nyamu extended the order to March 13 and directed all parties to file and serve affidavits regarding the case.

The judge also extended the order stopping Kenya Railways Corporation (KRC) Managing Director and the Government from taking action against RVR (K) in connection with any breach of the concession agreement.

RVR is seeking orders to quash Kenya Railways October 16, last year, decision to terminate the concession agreement.

When the interim orders were issued on January 14, RVR advocate Mr Njoroge Regeru told the court that if the Government terminated the agreement, his client would have to return to KRC the conceded assets under the concession agreement and RVR (K) would have no further rights of the concession.

He said as a result of the destruction of the railway line early last year, its services on the Kenya-Uganda railway line, were disrupted, leading to the company not meeting its obligation.

Under the concession structure, the 35 per cent shareholding of Sheltam is not capable of being reduced or diluted. He said three shareholders in RVRI were willing to inject funds but current shareholding structure was deterring them.