KR and RVR form joint committee to resolve the concession impasse
By David Indeje / July 31, 2017 | 4:05 pm
Kenya Railways and the Rift Valley Railways (RVR) have resolved to form a joint committee that will ensure a seamless hand handback of operations in the next 30 days. .
Following a court appearance on Monday, the two parties have a minimum of thirty days to finalise the process.
“Since January, Kenya Railways and Rift Valley Railways have been in discussion to resolve the dispute that resulted in KR issuing a termination notice to end Kenya Railways concession to Rift Valley Railways,” according to a statement signed by Atanas Maina, Managing Director KR and Isaiah Okoth, Group Chief Executive Officer RVR.
“During this time, the joint committee will also engage clients and other stakeholders concerned and will attend to pending and emerging issues to ensure minimal disruption to their services and business operations,” it adds.
“In doing so, KR/RVVR will endeavour to ensure there is minimal adverse economic and social impact associated with the transition.”
Read: Qalaa Holdings to sell 80pc Stake in Rift Valley Railways for Sh13.3B
KR is in the process of terminating the 25-year concession agreement with RVR once billed as the best option to revamp the then ailing Kenya Railways Corporation.
Lady Justice Grace Nzioka ordered that there be a mention on September 26 to confirm the handover.
However, KR accused RVR for failing to meet the set operating targets.
RVR moved to court seeking the revocation notice of the termination before it was paid Sh2.7 billion concession fees, rent and damages for life expired assets on or before June 29.
RVR is majority-owned by Egyptian private equity firm Qalaa Holdings.
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