The two units- KRC and RRA shall each have a separate board whose chair will be appointed by the President
Kenya railways is set for an extreme makeover with a proposed legislative proposal that seeks to drastically alter its management and operational regime of the state corporation as it makes the Cabinet Secretary in charge of railways an all-powerful individual.
The draft Railways Bill 2024, sponsored by the government, seeks to repeal the Kenya Railways Act and in the process split the state corporation into two distinct, independent but interdependent units- Kenya Railways Corporation (KRC) and the Railways Regulatory Authority (RRA).
KRC, the Bill proposes, shall be in charge of the railway infrastructure network and other commercial logistics hubs across the country with RRA tasked with offering advisory roles to the CS on matters economic regulation, registration and licensing of train managers among others.
“The Bill seeks to provide for the establishment of Kenya Railways Corporation, Railway Regulatory Authority as the railway economic and safety regulator, provide for open access, to make provision for infrastructure managers and train operators,” the draft Bill reads.
Currently Kenya Railways has one governing body- Kenya Railways Corporation headed by a Managing Director who is responsible for day-to-day management of the corporation.
The Bill proposes that each of the two railways units will have a separate head appointed by the Cabinet Secretary in charge of Transport and overseen by different sets of boards whose chairpersons shall be appointed by the president.
The Bill also seeks to establish the Railway Training Institute (RTI) as a training institute in the railway industry that shall provide learning and development programmes which include training and research in the railway sector.
While KRC will be headed by the Managing Director, appointed for a three-year term renewable once, the RRA will be headed by the Director-General who shall also serve for three years renewable once.
The Bill proposes that the functions of the corporation shall be to plan, develop, construct and operate railway infrastructure and other associated commercial and logistics hubs or desirable facilities required within the operational corridor for the purposes of the Corporation.
The corporation shall also maintain, repair and improve the Kenya Railways network and associated commercial and logistics hub facilities directly or through a subsidiary or subsidiaries.
“The corporation shall provide railway transport services for commuter, long distance passenger and freight, utilize railway infrastructure capacity or allocate the capacity to train operators to operate on its behalf and allocate infrastructure capacity to operators,” the Bill reads in part.
The RRA shall advise and make recommendations to the CS on matters relating to railway technical and safety regulation, economic regulation including tariffs for railway services, register and license train operators and infrastructure managers.
The authority shall also be in charge of promoting investment in rail equipment, infrastructure and service, implement policies relating to railway safety, security and ensure the provision of safe, reliable and efficient rail transport services.
Other functions include conducting inspections and certification on rolling stock, communication and signaling systems, appointing inspectors, advising the CS on national policy on rail transport safety among others.
“There shall be a Managing Director of the corporation, who shall be appointed by the Cabinet Secretary from a list of three qualified persons recommended by the board following a competitive recruitment process,” the proposed lad states.
Managing Director shall be responsible for day-to-day management of the corporation.
The management of the corporation shall vest in a board consisting of a chairperson, appointed by the President, the CS for Finance, Principal Secretary responsible for railway matters, MD of Kenya Railways and MD of the Kenya Ports Authority (KPA).
The other six members shall be persons, “not being public officers or employees of the corporation”, appointed by the CS by virtue of their knowledge of and experience in railways or transport matters.
The corporation board shall provide a coordinated and integrated system of rail transport services, rail transport services to link waterways between two railway networks, rail operations within the ports and inland container depots and auxiliary road services.
“The performance of the duty of the board shall include a general duty to secure the full development, consistent with the economy of the undertaking of the corporation, ensure the corporation is operated efficiently, economically and with due regard to safety.”
The Bill says that the DG shall, “subject to the direction of the board of the authority be responsible for the day-to-day management of the authority.”
The DG shall manage the funds, property and affairs of the Authority, be responsible for the management of the staff of the authority, and implement the policies, programs and objectives of the authority.
The DG shall also prepare for the approval of the board of the authority the strategic plan and annual plan of the authority, the annual budget and audited accounts of the authority and perform such other duties as may be assigned by the board of the authority.
The RRA board shall include a chairperson appointed by the President, the CS in charge of Finance, PS responsible transport and the Attorney-General.
The board shall also include six persons, who are not public officers or employees of the authority appointed by the CS transport “by virtue of their knowledge of and experience in railways sector or transport” and the DG.