Scandal-tainted Kenya Railways Corporation (KRC) managing director Philip Mainga is at the center of serious graft allegations in the perpatual loss-making state corporation even as Kenya Government positions to rid itself of unprofitable state parastatals.
First appointed to office in February, 2019 before his contract was irregularly renewed in January 2023, Maingi has been involved in a litany corruption scandals during which time KRC has experienced the heaviest loss making among State Corporations.
According to data from the Consolidated National Government Investment Report covering the 2020/21 financial year, the first full year Maingi served as CEO, KRC underwent a colosal loss of a staggering Ksh.24 billion.
Economic experts say KRC’s persistent loss making by Kenya Railways is squarely on to the ‘hubris, corruption incompetence, and greed’ of its managing director and his perceived stranglehold of the board of directors.
Maingi’s influence within the corporation is said to be so deeply ingrained due to his lengthy employment at KRC where he now stands as an impediment on KRC’s path to stability and profitability.
However, it is in KRC’s expansive real estate where Maingi has minted billions while conspiring with corrupt land agents to defraud the corporation.
Earlier this year, the National Assembly’s Departmental Committee on Transport and Infrastructure released an explosive report which revealed KRC lost about Sh91.3 million in the leasing of ten parcels of land.
According to a report by the office of the Auditor-General over Sh21 million collected from land rates were also never banked and likely found their way into Maingi’s pocket.
“The Special audit noted that Sh253.8 million was the total amount recorded and invoiced in the availed customer ledger accounts and cash books for the 10 leased parcels of land.
In probing how the KRC entered into two long term agreements with M/s. Grain Bulk Handlers limited (GBHL) and M/s. Autoports Freight Terminal Limited, the parliamentary committee established that Maingi did not seek board approval and unilaterally flouted procedures in the contractual agreement between Kenya Railways and M/s. Autoports Freight Terminal Limited were not transparent and lacked the requisite documents with clear audit trail unlike the agreement with M/s. GBHL. This deal alone heavily indicted the besieged MD and divided the KRC board.
Following developments at KRC are senior government officials who are keen to see the corporation make a turn around. Insiders say it is only a matter of time before Cabinet Secretary Ministry of Roads and Transport Kipchumba Murkomen orders Maingi’s replacement.
Covering news about Eastlands especially Umoja, Kayole and Buruburu estates