Kenya Railways boss Philip Mainga has been faulted over an alleged secret scheme engineared by the corporation to benefit from the fuel crisis in the country.
The move which has seen transporters across the region face increased costs after Kenya Railways raised freight charges has become a borne of contention even as Kenyan legislators maul interim option to protect industry stakeholders.
Kenya Railways introduced a new freight pricing formula in April 2026 that directly links cargo charges to monthly fuel price changes announced by the Energy and Petroleum Regulatory Authority (EPRA).
However, further investivations reveal a daunting scheme that escalated into an agreement to raise the charges by an extra 3% with Mainga and the board as the direct beneficiaries.
The crisis intensified after EPRA increased diesel prices in Nairobi to a record KSh246 per litre on May 14, before later revising it downward to KSh232.86 following nationwide protests by transporters and commuters.
Kenya Railways, whose locomotives rely heavily on diesel, subsequently adjusted freight tariffs upward by about 12 percent from what would have been a possible 9 percent increase as per analysts
Kenya Railways consumes approximately 38 million litres of diesel annually to operate its Standard Gauge Railway (SGR) network. Under the new pricing model, transporters using the railway line between Mombasa and Naivasha will now pay significantly more for cargo movement.
This means Mainga and team are approximately going to make 395 miliion in a period of four months if the situation persists.
Expert Agayo Ogambi has warned that the increased rail charges would affect regional trade, especially cargo destined for Uganda, Rwanda, South Sudan and the Democratic Republic of the Congo.
Many transporters have increasingly relied on the SGR from Mombasa to Naivasha before shifting to metre-gauge rail and trucks towards the Malaba border.
Under the revised tariff structure, freight prices automatically rise or fall depending on fuel costs. Kenya Railways set a benchmark diesel price of KSh170 per litre, with freight charges adjusted by four percent for every KSh10 increase or decrease outside the benchmark range.
The wider fuel crisis has already sparked unrest across Kenya. Reuters reported that transport operators staged protests over rising diesel prices, causing major disruption in Nairobi and other towns.
The government later announced a diesel price reduction after negotiations with transport associations.
Business groups including the Kenya National Chamber of Commerce and Industry have warned that high diesel prices are increasing the cost of logistics, manufacturing, food distribution and regional trade competitiveness.
Industry analysts say the increased railway and trucking charges are likely to trigger higher prices for consumer goods across East Africa as businesses pass transport charges.
