Changes Coming For Kenya’s Railway Sector

In a bid to reinforce Kenya’s position as a key regional logistics hub and tackle the historical underinvestment in the railway sub-sector, the Cabinet on 15 January 2024, approved the Railway Bill 2024. This Bill is designed to introduce innovative methods for managing the nation’s railways, distinctly separating freight, commuter, and land development operations.

“TO TAP ON private capital to address the under-investment in the Railway sub-sector, the Cabinet approved The Railway Bill, 2024. Besides fortifying Kenya’s leadership as a regional logistics hub by vertical unbundling (separation) of the management of our nation’s railway sub-sector the proposed reforms further seek to repeal the 1978 – Kenya Railways Act, Chapter 397, Laws of Kenya.”

With the Bill’s enactment, a Railway Regulatory Authority will be established, responsible for supervising safety regulations, operator licensing and the implementation of open access. This shift to an open access model in the railway sector is anticipated to generate a plethora of business opportunities within this domain.

Moreover, land holdings under Kenya Railways are set to be utilised for the development of railway cities, a concept already in progress in Nairobi and slated for expansion to other principal towns. The Bill promotes engagement from the private sector, investors and even county governments in these projects.