Kenya Pipeline funds revival of Nairobi to Nanyuki rail
Noel Wandera and Alvin Mwangi
Kenya Pipeline company (KPC) is funding rehabilitation of the Nairobi-Nanyuki Railway line with part of its Sh1.8 billion remittance to the Exchequer in form of special dividends.
Rehabilitation of the metre gauge railway stretch is expected to increase economic activities in northern and Mt Kenya regions.
Managing director Macharia Irungu said KPC is ready to support Kenya Railways (KRC) as it completes the rehabilitation of the line from Nairobi to Nanyuki.
“Economic benefits of this refurbished line will go beyond the Mt. Kenya region to other areas such as Isiolo, Samburu and neighbouring areas,” he added.
The rehabilitated line, according to Irungu, will contribute significantly to the realisation of the government’s Big 4 agenda.
KRC is expecting to generate over Sh370.4 million revenue per year from the revived line, John Siele, the corporation’s head of commercial operations said.
He said the corporation has finalised negotiations on proposed rates with the business community for the cargo and passenger trains with the bulk of the revenue coming from the commercial operations.
Consequently, the corporation will charge Sh82,000 for a single 50 tonne of fuel tank, with a tonne costing Sh1,640, while investors ferrying livestock from Laikipia County will pay Sh730 per tonne of cattle and Sh465 per tonne of small animals.
Fertilisers, cereals, hardware and farm products among other general cargo will be ferried to and from Nairobi at a cost of Sh1,400 per tonne.
Siele said ferrying imports stocked in Nairobi will cost Sh20,000 per twenty-foot equivalent unit (TEU) container to Nanyuki.