Uganda’s government is set to join Kenya in the push to terminate Rift Valley Railways’ 25-year concession to run the Kenya-Uganda Railway.
According to local news agency URN, sources at the Ministry of Works and Transport have indicated that Uganda is backing the Kenyan position on the way the concession to operate the metre-gauge railway in Kenya and Uganda has been handled.
The Kenyan government on 31st March this year sent a notice of intention to terminate the concession to RIFT Valley Railways (RVR).
The source at the Works ministry confirmed to URN the contract in Kenya has not been terminated. The source indicated that RVR was given 90 days for the concession to be terminated.
Kenya accused RVR of failure to pay over 5.8 million US dollars. The Kenyan government also said RVR had failed to turnaround the over 2,350 kilometre railway track linking the Indian Ocean port of Mombasa to Kenya and Uganda.
In Uganda, RVR failed to meet what is termed as the Golden Standards, according to the past two Transport Sector reviews. RVR has allegedly failed to extend the services beyond to North Uganda.