RVR raids its supplier for new boss

The Rift Valley Railways has appointed a new chief executive officer to drive its rail transport investment plan in East Africa.

The Kenya-Uganda railway concessionaire tapped principal machine supplier General Electric’s general manager in charge of health care for East Africa to join the group as managing director.

Mr Isaiah Otieno Okoth will replace Brazilian Carlos De Andrade, who has been at the helm of RVR for three years.

The new chief executive takes the corner office in March for a one month transition before taking full charge of the concession firm.

The railway operator, which is at the peak of its five-year investment and transformation programme, has more than doubled its locomotive and wagon carrying capacity, rehabilitated key sections of the rail infrastructure and introduced modern management systems.

The company now says the new impetus is meant to fast-track its turnaround after a ‘challenging’ half decade in the business.

Rift Valley Railways Chairman Titus Naikuni said the former GE boss will add value to the railway transporter due to his background as a management professional and his years of experience in ‘high level’ management.

“His appointment will give the executive management team (EXCO) and the company in general, the necessary leadership and focus necessary to succeed.

“As a board we have the fullest confidence in him and believe he has the skills and experience to take RVR to the next level,” said Mr Naikuni.

General Electric is the supplier of RVR’s 13 locomotives, with the latest consignment of four received last September.

RVR spent Sh2.3 billion ($25 million) to acquire the new engines with the support of a $20 million asset financing facility from Standard Bank and $5 million from majority shareholder Qalaa Holdings.

The company went through a shareholder restructuring in the third quarter of 2010 and was given the mandate to operate railway services on 2,352 kilometres of track linking the port of Mombasa with the interiors of Kenya and Uganda, including Kampala.

Outgoing Chief Executive Andrade had decried the rise in cost of turning around the country’s railway transport due to infrastructural degradation and the continued wear of the railway line first laid more than 100 years ago.

The company is required to pay an annual concession fee of 11.1 per cent of gross revenues to Kenya and Uganda, invest at least $40 million in capital and infrastructure improvements.