Kenya Railways fights bid to stop Sh12bn Riruta-Ngong rail project

A legal battle over the funding of the Sh12 billion Riruta-Ngong commuter railway project has intensified after Kenya Railways Corporation moved to defend the project in court, insisting that every stage of its implementation complied with the law and was subjected to the required oversight.

The corporation has asked the court to dismiss a petition filed by Busia Senator Okiya Omtatah and the Karen Lang’ata District Association, which challenges the use of money from the Railway Development Levy Fund in financing the commuter rail line.

In its submissions, Kenya Railways said claims that the project was concealed, irregular or undertaken outside constitutional processes are not supported by any evidence.

“At every stage, the process was subject to audit, oversight and statutory controls. There is, therefore, no evidential basis for the allegation that the projects are hidden, irregular, or outside constitutional governance structures,” it said.

The dispute revolves around the Riruta-Ngong metre gauge railway line, which was commissioned in December 2023. Omtatah and the association argue that funds from the Railway Development Levy Fund were used unlawfully in the construction and implementation of the project.

Kenya Railways, however, maintains that the petition is anchored on provisions of the law that have since been revised. According to the corporation, the amendments addressed the issues raised by the petitioners and provide a clear basis for the use of the fund in railway infrastructure projects.

“Furthermore, the Riruta-Ngong Commuter Meter Gauge Project is a railway infrastructure project, and thus, the implementation and construction of such a project using funds from RDLF goes hand-in-glove with the purposes of the RDLF as outlined under Section 8(3)(a)-(c) of the Miscellaneous Fees and Levies (Amendment) Act, 2026,” said the KRC.

The corporation argued that the project falls squarely within the purposes for which the fund can be used under the amended legislation.

But Omtatah has rejected that argument, saying the railway project was already underway long before the amendment took effect on March 27, 2026.

He contends that the law in force at the time only permitted the Railway Development Levy Fund to support the construction and operation of the standard gauge railway network.

The senator further argues that the 2026 amendment did not expressly state that it would apply to spending that had already taken place before it was enacted, meaning the changes cannot be used to justify earlier expenditure on the commuter rail project.

The court is now expected to determine whether the use of the levy fund for the Riruta-Ngong railway project was lawful under the legal framework that existed when the project was initiated.