CS sued in bid to kick out Railways boss, audit SGR contracts

Kenya Railways Corporation is facing a legal challenge as a petitioner seeks to oust its Managing Director, Phillip Mainga, and scrutinize the corporation's contracts, including those for the Standard Gauge Railway (SGR).

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Under the prevailing governance principles applicable to the state corporations, the office of the Managing Director is not meant to be occupied indefinitely.

The petitioner, Wahome Mucunu, has filed a case against the Kenya Railways board, the Attorney General, and the Transport Cabinet Secretary, naming Mainga as an interested party. The core of the legal argument is that Mainga, appointed in 2018, holds a permanent position, which allegedly contravenes regulations for state corporations that typically employ managing directors on short-term contracts. Mucunu contends that Mainga's tenure should have concluded in 2024.

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Transparency International this year in March this year allegedly indicated that SGR was a high-risk project, with a 4.9 out of 5 corruption risk score.

Beyond the employment dispute, the lawsuit highlights significant concerns regarding procurement and transparency within Kenya Railways. The Standard Gauge Railway project is specifically cited, with the petitioner referencing a March report by Transparency International that allegedly scored the SGR as a high-risk project with a 4.9 out of 5 corruption risk score. The petitioner argues that the SGR project has been a subject of continuous public debate concerning transparency, accountability, value for money, public participation, procurement practices, and debt sustainability.

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The project has equally generated sustained public debate concerning transparency, accountability, value for money, public participation, procurement practices and debt sustainability.

Mucunu further claims that Kenya Railways, like other public institutions, has repeatedly failed to provide requested information to accountability actors and researchers. The petitioner asserts that the responses received were insufficient for effective public oversight. The lawsuit emphasizes the public's legitimate constitutional interest in how the SGR project was conceived, procured, financed, and implemented, given that taxpayers and public borrowing ultimately fund it. The petitioner also notes that questions raised by the public, civil society, and governance experts about the management of major projects have not been adequately addressed, leading to a lack of public confidence.

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The Petitioner states that the people of Kenya, being the ultimate financiers of the project through taxation and public borrowing, possess a legitimate constitutional interest in the manner in which the project was conceived, procured, financed and implemented.