Economy

Nairobi railway transport stalls in salaries row

RVR

A Rift Valley Railways locomotive. FILE PHOTO | NMG

Workers at the Rift Valley Railways have disrupted the Nairobi commuter train service following payment of a half salary in a month that saw the government cancel the rail firm’s operating licence.

The workers on Thursday protested at the RVR offices in Nairobi, saying they will resume work once they are paid their full pay.

The commuter train playing between the Nairobi’s city centre and Syokimau via Imara Daima was grounded yesterday morning following the protests.

The workers vowed to block the train that serves the city centre to Ruiru via Umoja and Dandora estates last evening.

RVR said it is unable to pay full salaries due to financial constraints that last month saw the government cancel the concession agreement, which offered the rail firm rights to operate the Kenya-Uganda railway.

“Concession was terminated. In the confusion, we lost a lot of business. We have however wired their money through their bank accounts and they will get it in the next two-three days,” said Sammy Gachuhi, RVR’s general manager, concessions and external communications.

Kenya terminated the 25-year contract it signed with RVR to run its century-old metre-gauge line to Uganda.

READ: RVR loses fight to save its 25-year railway contract

The decision was reached by consent made in the High Court between RVR and the Kenya Railways (KR) Corporation.

“It is hereby ordered by consent that the concession agreement dated January 23, 2006 be and is hereby terminated today July 31, 2017,” ordered Justice Grace Nzioka.

“The parties will within 30- days effect orderly transfer of employees and assets and agree on modalities of handing back of all the property to KR and the Government,” she added.

The termination was triggered by the failure of RVR to pay concession fees amounting to Sh600 million and breach of performance targets including cargo moved on rail from the Mombasa port.

The protesting employees were drivers, train attendants, engineers, security personnel and welders. They said they had received half pay for the month of their July.

Last month, RVR staff in Uganda also went on strike, leaving commuters stranded and business worried about their cargo which was yet for transportation to Kenya.