SGR project faces delay after court rejected agency's request

President Uhuru Kenyatta’s biggest project faces further delays after Kenya Railways lost a bid to lift the suspension for the construction of the standard gauge railway on a piece of land in Mombasa.

The suspension, which enters its third week Monday, was extended on Friday.

This means that the construction of the Sh327 billion railway could have far reaching implications on the delivery time of the mega project slated for next year.

The piece of land in question was previously owned by Africa Oil and Gas. Justice Anne Omollo, sitting at the Land Court in Mombasa, ruled that an earlier suspension issued on June 24 still stands until a ruling for the matter is made on July 22.

She only allowed the contractors China Roads and Bridge Corporation (CRBC), who have been enjoined as respondents, into the site to secure their machinery but cautioned them against continuing with construction.

“The fourth respondent (CRBC) is granted permission to secure their machinery on the ground,” she ruled.

“They are however not allowed to start or carry any constructions or do such other activities that would contravene the order,” she said.

Kenya Railways had Thursday through lawyer Cecil Miller asked the court to lift the suspension in the interest of the public saying it was losing a lot of money by paying workers, running the sites and for contracted supplies. The daily cost was put at Sh38 million.

He said that the project involves multiple contracts with other agencies and stopping it will make Kenya Railways to be in breach, which would lead to penalties that will have to be footed by taxpayers.

If the claims made by the corporation in its defence are true then it means taxpayers will have footed an extra Sh1.1 billion for the construction of the SGR, which has already been dogged with claims of over pricing of land acquisition.

Mr Kenyatta, who is banking on the project as one of the Jubilee government’s key successes, while on a tour of the project in Makueni last month, said the project is on course and the phase between Mombasa and Nairobi will be completed by June next year.

However, it has been dogged by complaints regarding compensation for land acquired which raised concern on whether it will be completed on time - just two months to election - as scheduled.

Kenya Railways is also embroiled in another court case with owners of Miritini Free Port who say the government compulsorily acquired their 91-hectare piece of land but has not compensated them. The land is valued at Sh1.4 billion.