Kenya Railways Corporation (KRC) Managing Director Philip Mainga is at the center of a new controversy following a proposed deal to lease locomotives to the Uganda Railways Corporation (URC). The agreement, valued at approximately $22 million (Shs80 billion) over ten years, has drawn sharp criticism and raised concerns over potential mismanagement of public funds.

The proposed deal would see KRC lease four locomotives to URC for a daily fee of $2,500 per locomotive. This amounts to a staggering $7,500 per day for three locomotives, which URC intends to use to address its critical locomotive shortage and support growing cargo transport demands.

However, the deal’s economics have come under intense scrutiny. Critics are questioning the financial viability of such a long-term leasing arrangement and its potential impact on URC’s financial health. There are growing concerns that the agreement could lead to a significant waste of taxpayer funds, with some observers suggesting that a long-term lease may not be the most cost-effective solution for Uganda’s railway needs.

The controversy is compounded by Mainga’s already tarnished reputation. The KRC head is currently facing multiple corruption probes and allegations of financial mismanagement. Activists have already filed a petition in the High Court to compel anti-corruption agencies to investigate his conduct, citing a pattern of irregular procurement and questionable leasing deals that have resulted in massive financial losses for Kenya Railways.

This new deal with URC adds another layer to the existing allegations, putting further pressure on Mainga and raising serious questions about the transparency and accountability of high-value public contracts between the two nations.