Kenya: Let's Not Mess Up KQ Turnaround Efforts the Way We Did Rift Valley Railways

analysis

For a transport business, logistics are straight forward: The sole responsibility of an operator is to move goods and passengers from one point to another. However, the operator's success is determined by efficiency and pricing -- factors influenced by the environment.

In 2005, the Kenya Railways Corporation (KRC) and Uganda Railways Corporation (URC) entered into an agreement to concession out the operation of the Kenya-Uganda railway in an effort to turn around the business. A concessionaire was to be granted a 25-year agreement in a deal that would see them profitably operate the railway from which both governments would earn revenues in form of concession fees paid out every quarter.

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