The company that runs the century-old Kenya-Uganda railway, Rift Valley Railways (RVR), has moved to court in a last-minute effort to stop the concession manager, Kenya Railways Corporation (KRC), from terminating its 25-year contract.RVR is seeking to revoke a notice of termination that Kenya Railways sent it seeking payment of $26.806 million (Sh2.7 billion) concession fees, rent and damages for life expired assets on or before June 29.Kenya Railways initially terminated the deal in March arguing that RVR had failed to meet operation targets set in the agreement, including payment of concession fees.The temporary relief is, however, pegged on RVR depositing Sh1.35 billion in court as security.RVR has 30 days to deposit the amount or get the temporary order lifted, paving the way for termination of the contract.Parties to the dispute are expected in court on July 31, when the judge is expected to confirm compliance with her orders.Kenya Railways had argued in its response that RVR failed to maintain tracks leading to speed restrictions on 17 per cent of the entire line, meet the required 2.1145 billion net-tonne kilometres and remit rent and concession fees.“The matter was last in court on March 31, 2017 wherein the court granted the parties 30 days within which to negotiate the matter with a view to settle it out of court. RVR has to date refused to approach KR for any negotiations or discussion towards resolving the matter.

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