Investigations
Bunge La Mwananchi Petitions Court to Halt UK Sh28B Funding for Kenya Railways Amid Mismanagement Allegations
The petition also seeks recovery of funds allegedly lost through fraudulent procurements and illegal tenders under Mainga’s tenure.
Bunge la Mwananchi, a Kenyan social justice movement, has filed a petition at the High Court seeking to suspend multibillion-shilling funding from the United Kingdom to Kenya Railways Corporation (KRC) for the Nairobi Railway City project.
The petition, lodged before Justice Chacha Mwita by the group’s president and activist Francis Awino, also demands a forensic audit of KRC and a lifestyle audit of its Managing Director, Philip Mainga, over allegations of financial mismanagement and tender irregularities.
Awino’s petition calls for an order to stop the British government from disbursing funds—estimated between Sh12 billion and Sh28 billion—for the redevelopment of land around Nairobi Central Railway Station into a modern, sustainable urban space known as Railway City.
The activist argues that the funding, which includes a confirmed UK commitment of approximately Sh11.9 billion, should be halted until KRC’s financial affairs are transparent and accountable.
“The court should direct the UK government not to release any funds, whether loans or grants, to KRC until a full audit is conducted and the respondent [Mainga] demonstrates transparency,” Awino stated in court documents.
The Nairobi Railway City project, intended to create a Transit-Oriented Development (ToD), has faced scrutiny amid reports of mismanagement.
Awino claims the UK had previously considered suspending funding due to irregularities, though conflicting reports suggest the project remains ongoing.
He further alleged that President William Ruto intervened by engaging UK Prime Minister Keir Starmer to salvage the initiative, pointing to KRC’s inability to manage its affairs independently.
Awino accused Mainga of failing to inspire investor confidence, citing a lack of a clear financial strategy that has exacerbated KRC’s debt crisis and burdened taxpayers.
He also linked the MD to ongoing land disputes, including a case in Embakasi where KRC is alleged to have paid squatters, some of whom claim they never received compensation. “Instead of resolving disputes transparently, Mainga’s leadership has been marked by opacity, eroding public trust,” Awino told the court.
Among the petition’s most serious allegations is a claim that Mainga irregularly awarded a Ksh 88.2 million tender to First Choice General Supplies, a company purportedly owned by his longtime girlfriend, Peninah Patricks.
This accusation, led to Mainga’s questioning by a parliamentary committee, though it awaits official confirmation from bodies like the Ethics and Anti-Corruption Commission (EACC).
Awino urged the EACC to investigate and recommend charges to the Director of Public Prosecutions (DPP) if substantiated.
The petition also seeks recovery of funds allegedly lost through fraudulent procurements and illegal tenders under Mainga’s tenure.
Awino pointed to broader mismanagement, including deals he claims have jeopardized KRC’s infrastructure and failed negotiations that could have secured better terms for the corporation.
KRC has yet to respond officially to the petition, and the court has not scheduled a hearing date. The Nairobi Railway City project, backed by the UK government and valued at up to Sh28 billion for its full scope, continues to draw attention as a flagship urban development initiative, despite the controversies surrounding its management.
Awino’s legal action underscores growing public concern over accountability at KRC, with Bunge la Mwananchi positioning itself as a watchdog for taxpayer interests.
The outcome of the petition could impact not only the Railway City project but also Kenya’s broader relationship with international development partners.
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