Railway contract won’t cost Sh1.3 trillion, says Cabinet secretary

By Rawlings Otieno and Anjellah Owino

Nairobi, Kenya: Transport Cabinet Secretary Michael Kamau has dismissed media reports that standard gauge railway from Mombasa to Nairobi would cost Sh1.3 trillion.

Instead he sought to clarify that only the distance between Mombasa and Nairobi has been awarded and will cost Sh327 billion (US $ 3.8 billion), an amount he says will cater for both construction of the railway and supplies of other equipment for the next two years after the completion of the construction.

“I don’t know where Sh1.3 trillion is coming from. The construction of the railway from Mombasa to Nairobi will cost Sh327 billion. The rest of the construction from Nairobi to Malaba with a branch line to Kisumu has not been tendered,” said Kamau.

Feasibility studies

The CS clarified that the building of the railway was to cost Sh220 billion and a two-year procurement to cost Sh107 billion, noting that the ministry is still carrying out feasibility studies for the branch line of Kisumu to Malaba which is to cost approximately another Sh220 billion.

Addressing the heads of parastatals in his ministry in Nairobi Wednesday, the CS stressed that development projects which are under way will ensure that the goal of reaching a five per cent Gross Domestic Product (GDP) from the sector is realised.

“Every parastatal under the Transport and Infrastructure ministry is held account to a GDP growth of five per cent in five-year period,” said Kamau.

In line with the GDP growth target, the CS pledged to see the modernisation of the aviation, transport, and port infrastructure.

He said the seven missing road links in Nairobi’s Eastlands will be constructed, starting in the next three to four months, to ease traffic flow and open area for greater development.

“We will construct standard roads with non-motorist lanes and roads that can also be used for recreational area like skating during weekends in those estates,” said Kamau.

Kamau was accompanied by his PSs Nduval Muli (Transport) and John Mosonik (Infrastructure).

He warned the parastatal heads against encouraging inside trading on tenders and other bids.

He said there were people within the ministry who start companies and award tenders to those companies.

“We will not entertain anybody who deals in inside trading because this brings conflict of interests. We will not allow that,” warned Kamau.

“We need to implement all programmes within the law and procedures set out in the guidelines,” he said, adding that “of particular note is the area of procurement and recruitment.”

He further asked the parastatal chairs and board of directors to inform the public of what they are doing and urged them to use the social media to reinforce the message.

The ministry’s other projects in progress include increasing the paved network from seven per cent to 15 per cent using modern development instruments, modernising and improving Mombasa seaport to international standards, improving the rail networks, modernising the ferry and water vessel services, expansion of the JKIA and rehabilitation of existing roads to open up new areas, among others.