Transport Ministry introduces new Bill seeking to open-up rail network to private operators

The Ministry of Roads and Transport has unveiled a groundbreaking Bill aimed at transforming Kenya’s railway sector by allowing private operators access to railway infrastructure. This proposed Railways Bill 2024, currently under public review, could dramatically reshape the industry by permitting private entities not only to contribute to the expansion of the railway network but also to operate on existing infrastructure.

The Ministry’s initiative is designed to break the longstanding government monopoly over the railway system and introduce increased competition and efficiency. The last major reform in the sector occurred in 2005, and the new Bill is poised to update the operational framework significantly.

Brenda Mwango, a legal officer from the Ministry, explained during a public forum in Nyeri Town that the Bill aims to revolutionize railway operations. “The Bill will create opportunities for private entities to apply for and construct new railway lines, fostering a more competitive and dynamic sector,” she stated.

Under the current system, Kenya Railways manages, operates, and regulates the entire railway network. However, the new Bill proposes a separation of these functions to improve efficiency. It suggests the establishment of two distinct bodies: the Kenya Railway Corporation (KRC) and the Railway Regulatory Authority.

The KRC would assume responsibility for the operational aspects of the railways, including construction, maintenance, and setting of fees and charges. It will also offer policy advice to the Cabinet Secretary on national train transport issues. This restructuring aims to streamline operations and enhance service delivery.

Conversely, the Railway Regulatory Authority would focus on regulatory oversight. Its duties would include registering and licensing railway operators, training infrastructure managers, and setting safety standards for rail operations across the country. The Authority is designed to ensure that the sector adheres to high safety and operational standards, an area currently managed by Kenya Railways.

Ms. Mwango highlighted the key benefits of the proposed changes, emphasizing that the Bill will separate regulatory functions from operational tasks. “This will prevent conflicts of interest, as Kenya Railways will no longer be responsible for both managing the network and overseeing its own operations,” she noted.

The Bill also seeks to enhance the role of the Railways Training Institute (RTI), proposing that it be incorporated as a semi-autonomous body under the KRC. The RTI will focus on training and research in rail transport, offering certificates and diplomas to build a skilled workforce for the sector.

The public is encouraged to contribute their opinions on the Bill. Written submissions can be sent to the Transport Ministry by September 13 through the provided email addresses: railwaybill@transport.go.ke, railbill@krc.co.ke, or ps@transport.go.ke.

If enacted, the Railways Bill 2024 promises to introduce significant changes to Kenya’s railway industry, potentially unlocking new opportunities for private investment and improving the overall efficiency and safety of the rail network.