Railway employees in limbo after RVR, Kenya Railways disown them

 

Rift Valley Railways failed to turn around the fortunes of the metre gauge railway after winning a concession to run it for 25 years in 2006.

Close to 3,000 Rift Valley Railways (RVR) workers could find themselves jobless after the railway operator and Kenya Railways Corporation (KRC) disowned them.

RVR, whose concession to run the old railway was terminated late July and given 30 days by the High Court to hand over employees and assets to KRC, said it had complied with the court order.

KRC, however, said it would only take up the assets, citing an agreement signed in 2006 that said employees and other obligations such as unpaid suppliers and debts to financial institutions would remain the concern of RVR should the concession come to an end or be terminated.

RVR Chief Executive Isaiah Okoth said the firm on Wednesday gave all employees letters, notifying them that they were being transferred to KRC as per the court orders.

The only employees left at RVR, which is also awaiting the verdict on whether Uganda will also terminate the concession, are those in management.

“We have given employees letters, notifying them that they have been transferred to KRC. We (RVR and KRC) had a joint transition committee and this issue was discussed at length. From the discussions and also the court order, the two entities had their roles to play and we have done our bit; we have transferred the assets and employees to KRC,” he said.

KRC, the metre gauge railway owner, however, said the employees were not its responsibility.

“In accordance with the Kenya Concession Agreement and the Laws of Kenya, all liabilities to suppliers, employees or any other party who have dealings with RVR shall remain with the company (RVR),” KRC Managing Director Atanas Maina said on Thursday.

“Kenya Railways is only taking back the conceded assets which were in use by RVR,” he added.

The High Court on July 31 ordered RVR to transfer employees and assets to KRC and the Government.

“It is hereby ordered by consent that the concession agreement dated January 23, 2006, be and is hereby terminated today July 31, 2017 that the parties within 30 days effect the orderly transfer of employee and assets and agree on modalities of hand back of all property to Kenya Railways and Government,” read the court document.

Kenya Railways, which now plans to take over the metre gauge railway, said RVR employees interested in working for them should make fresh applications.

“Kenya Railways is making arrangements to engage the workforce currently working under RVR afresh immediately RVR releases the staff they do not need,” Mr Maina said.

“The terms and conditions of engagement will be in line with GoK approved scales. Those employees wishing to be engaged will be required to submit their applications to Kenya Railways for consideration. In the interim, services may be interrupted, but Kenya Railways is doing everything possible to make steady, the change-over environment in order for services to continue.”

KRC in 2006 handed over the old railway to RVR, following a deal that was expected to see the concessionaire pump in money in rehabilitating the railway as well as increase utilisation. It, however, did not live up to the promise and RVR has consistently argued that there have been investments in improving the old line that is still largely unutilised.

Business
Premium Ruto's food security hopes facing storm amid fake fertiliser scam
Real Estate
Premium Affordable housing: Will State's data-backed action now pay off?
Business
Premium Nairobi business community plans protest as over 700 containers held at port
Sci & Tech
UK-based fintech PayAngel eyes Kenyan market with secure diaspora remittance solutions