Nairobi’s Milimani High Court has set the stage for a legal confrontation, issuing orders requiring responses to a petition filed against Philip Mainga, the Managing Director of Kenya Railways Corporation (KRC). The legal action arises from serious allegations of corruption, financial mismanagement, and ethical breaches.
Matasi Yatundu, a concerned citizen and advocate for good governance, has lodged the petition, citing what he alleges are numerous violations of Kenya’s Constitution and related laws, including the Leadership and Integrity Act and the Public Officer Ethics Act.
The core of Yatundu’s petition centres on claims of substantial financial losses within KRC, which he attributes to irregular procurement practices and a lack of accountability. Furthermore, the petition highlights reports of KRC facing a significant financial penalty due to defaulting on the Standard Gauge Railway (SGR) loan. Adding to the gravity of the situation are accusations concerning KRC’s dealings with international investors.
It is alleged that the corporation enticed foreign companies with promises of land development, only to subject them to frustrating delays and broken commitments, ultimately leading to international legal disputes. A specific instance involves a legal notice sent on behalf of a high-ranking member of the Qatar Chamber of Commerce regarding unfulfilled real estate promises.
Further issues are raised regarding alleged irregularities in land leasing, particularly within the Nairobi Railway City development and SGR station areas. The petition claims that these leasing actions took place despite ongoing development plans.
Accusations of financial impropriety have also emerged regarding dealings with companies such as Autoports Freight Terminals Ltd, with claims of significant financial losses due to irregular practices.
In response, the Honourable Mr Justice E.C. Mwita has ordered that all involved parties be served with the pleadings, granting 14 days for responses.
A subsequent hearing to provide directions on the case has been scheduled for 31 March 2025.
The Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and the Assets Recovery Agency (ARA) have been named as interested parties in the case.
