Rift Valley Railways (RVR) was a consortium established to manage the century-old Kenya-Uganda railway line, known historically as the Uganda Railway. Here’s a detailed overview of its history, operations, and eventual termination of contracts with Kenya and Uganda:
Establishment and Operations
- Formation and Takeover (2005-2006):
- Rift Valley Railways Consortium, led by Sheltam Rail Corporation of South Africa, won the bid to manage the Kenya-Uganda railway in 2005.
- The consortium aimed to revitalize the aging railway infrastructure, reduce inefficiencies, and enhance freight and passenger services.
- Operations began in November 2006 under a 25-year concession agreement.
- Challenges and Management Changes:
- The consortium faced challenges, including infrastructure damage during the 2007-2008 Kenyan crisis, which disrupted services and led to financial losses.
- Toll Holdings briefly managed the railway from October 2008 before control returned to RVR’s consortium management.
- Ownership Changes:
- In 2010, Citadel Capital (now Qalaa Holdings) acquired a 49% stake in Sheltam Rail Corporation, becoming a major shareholder in RVR.
- Subsequently, RVR’s ownership structure included Citadel Capital (30%), Bomi Holdings of Uganda (15%), and other institutional investors (55%).
- Investments and Expansion Plans:
- RVR planned significant investments to upgrade and expand the railway network, including raising funds through international financial institutions and shareholders.
- Projects included refurbishing infrastructure, establishing commuter services in Kampala, and exploring new railway connections to South Sudan.
- Termination of Contracts (2017):
- Kenya: In July 2017, the Kenyan government terminated RVR’s concession agreement, citing failure to meet operational and financial obligations. Control of the railway network reverted to Kenya Railways Corporation.
- Uganda: In June 2017, the Ugandan government issued a notice to terminate RVR’s concession. The termination took effect in September 2017, and operations returned to Uganda Railways Corporation.
Conclusion
Rift Valley Railways aimed to modernize and optimize the Kenya-Uganda railway network but faced significant challenges throughout its tenure. Despite initial plans for revitalization and expansion, operational issues, financial difficulties, and contractual disputes led to the eventual termination of its agreements with both Kenya and Uganda. The railway’s historical significance and potential for future development remain important considerations in East African transportation infrastructure planning.
