Kenya Railways ends 25-year concession contract with Rift Valley Railways
Railways - The Kenya Railways Corporation has terminated the 25-year contract that it had signed with the Rift Valley Railways (RVR) Kenya. The Concession Agreement, which was signed on January 23, 2006, was to run until the year 2031.
August 26, 2017: The Kenya Railways Corporation has terminated the 25-year contract that it had signed with the Rift Valley Railways (RVR) Kenya. The Concession Agreement, which was signed on January 23, 2006, was to run until the year 2031. However, the termination order was put into effect following RVR’s failure to meet the set operating targets and agreements.
Kenya Railways issued a termination notice to end the concession to Rift Valley Railways following discussions to resolve the disputes were failed. A joint committee between KR and RVR was formed to attend to stakeholders and ensure minimal disruption of services during the transition period.
KR and RVR have determined to ensure a smooth transition that entails a smooth hand back of operations and transfer of assets. The firms will attend to all pending and emerging issues to ensure minimal disruption to services. The firms have also endeavoured to ensure there will be minimal adverse economic and social impact during this transition period.