By Leo Odera Omolo

BUSINESS people and traders in Western Kenya are up in arms against the proposed plan to close down the railway line between Nakuru and Kisumu towns, saying it seriously hurt the region economically.

The effect of the closure would be felt in far field as Uganda , Rwanda , Burundi , DRC and Southern Sudan ..

The Rift Valley Railways {RVR} a South African multinational company , which a few years ago signed an agreement with the Kenyan government which enabled it took over the management of the railways services previously managed by the Kenya railways Corporation announced last week that that it was closing down the 100 year old railways line, which was built in 1900

Members of the business community in the region have, however, expressed concern over the decision by RVR to close down the Nakuru-Kismu railways line, arguing it would impact negatively on their operations and hurt the users of the line economically.

The rail line in question is regarded as the economic mainstay of Western Kenyan regions. Used in the transportation of tea, coffee, maize and sugar which are grown. and produced in the region in abundance.

Stakeholders have voiced concern that the closure of the Nakuru-Kisumu line had a far-reaching implications on economic activities in the regions and also on the land-locked neighbouring countries of Uganda , Rwanda and Burundi as well as the DRC and Southern Sudan . Business people in the northern Tanzanian towns of Musom, Tarime, Mwanza and Shinyanga are also known to depend on their regular supplies via Kisumu port , located on the eastern tip of Lake Victoria .

The railway line is so vital in the transportation of farm products such as tea, coffes, maize and sugar from the region to the market outlets in Mombasa , Nairobi and other towns.

Players in the sugar industry sub-sector of Kenya ’s economy hve also complained bitterly about the planned closure of the Nakuru-Kisumu rail line,

The announcement by the RVR came last week in the wake of bitter complaints by the Mumias sugar company, one of the largest sugar producing companies in Western Kenya that it was contemplating to stop using the RVR to transport sugar to the market due to frequent delays and unpredictability.

The Mumias sugar Chief Executive dr. Evans Kidero had expressed concern that it takes up to right days to move his company’s sugar to the market in Nairobi and other parts of the country. H added that the delays had caused crisis in the market system of sugar products in the country..

The RVR made an impromptu announcement saying it would immediately close Nakuru-Kisumu railway line, citing increased cases of vandalism.

The stakeholders in the sugar industry says the closure of the rail line, which has been in active use ever since its construction in 1902 will greatly hamper transportation of sugar from factories in Western Kenya to the capital, Nairobi and onward to the coastal port city of Mombasa and other smaller towns in Central and Eastern Provinces of Kenya..

As the result of the latest development, members of the business community in the cut off regions, clearing and forwarding agents and importers at the Kenyan port City of Mombasa have appealed to the government to immediately revoke the contract it entered with the RVR, a South African company which took over the management of the Kenyan Railways Corporation. They want the railway to revert to its former status quo.

A spokesman for the Kenya International Freight Forwarders and Warehousing association Mr. Peter Otieno was recently widely quoted in the local press as saying that the closure of Nakuru-Kisumu railway line would create unnecessary delays in delivery of cargo between Mombasa and Kisumu and Mombasa and inflates extra freight costs.

The same media had quoted the representative of the Ugandan business community mr George Kidima that the closure of the line “portends serious effect on the economies of not only Kenya and Uganda, but all the land-locked countries in East and central Africa whose exports and imports passes through Kenya to the sea outlet.”

The sales, Marketing and Customer relations of RVR Mr. Russel Carmichail was also quoted as having assured the traders who will be affected by the closure of the line would be assisted to transport their goods to the final destinations. But, he, however, did not elaborate how this will be effected.

The railways services in Kenya has been limping for a long time. It may take along time for it to regain its lost glory as the choice of the mode of passenger and cargo as it used to be up to the late 1970s.

During its hey-days, which lasted up to the early 1980s, Kenya Railways Corporation was the choice company for transport of freight. But now the glory is lost and the bulk of cargo are hauled by heavy trucks that are fast destroying what is left of Kenya road network, due to inadequate capacity and stagnated technology, continued overstaffing, coupled with a break down in system and declining capital investment led to unnecessary high operating cost, losses, negative cash lows and inability to sustain operations.

And owing to declining cargo traffic, Kenya Railways corporation had reduced its staff by more than 50 per cent 15 years ago and further drastic reduction of staff before it handed over the railways services to the RVR a few years ago.

Railways transport in Kenya now needs complete turn around in term of new technology and capacity. This are some of the reasons why the government had seen it fit to off-loaded its operation and ventured into a contract with RVR. ,which in turns appears as if it is incapable of turning it around..

Ends
leooderaomolo@yahoo.com

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Date: Fri, 20 Jun 2008 07:05:07 -0700 (PDT)
From: Leo Odera Omolo
Subject: BUSINESS PEOPLE IN WESTER KENYA ARE UP IN ARMS AGAINST THE CLOSING DOWN OF NAKURU-KISUMU RAILWAY LINE BY THE RVR