Investors inject Sh63bn to save RVR deal

• Sh156m paid to Kenya and Sh78m to Uganda in late concession fees

Monday’s meeting of the joint commission will take place under different circumstances because RVR has paid up the concession fees.

As long as the RVR shareholders were in default of paying concession fees, the two governments had the powers to give ultimatums and threats of cancellation.

But having paid the financial defaults under the concession agreement, the two governments cannot do much short of renationalising the railways.

Meanwhile, influential Uganda corporate executive Charles Mbire, is set to take up a 15 per cent stake in the company.

According to documents seen by the Nation, Mr Mbire has been invited by the shareholders of Rift Valley Railways to buy the shares.

Apparently, the concession agreement was amended to allow the participation of Uganda into shareholding of RVR.

Investor appetite for RVR is soaring following the realisation that the railway line will be the main transport corridor for crude oil exports from Uganda’s nascent oil industry.

The entry of the Ugandan will have major implications for the battle between TransCentury and Citadel because contrary to the position taken by Kenya, Kampala has embraced the Egyptians.