Mainga’s tenure dispute threatens to overshadow Sh25billion SGR compensation payout

The planned Sh25 billion compensation payout to landowners affected by the construction of the Naivasha-Kisumu-Malaba Standard Gauge Railway (SGR) project risks being overshadowed by a fresh legal battle over the continued stay in office of Kenya Railways Corporation Managing Director Philip Mainga.

The dispute threatens to shift attention from one of the government’s major infrastructure undertakings to questions about leadership legitimacy, accountability and the legal authority under which decisions involving billions of shillings in public resources are being made.

The Informer Media Group can authoritatively reveal that a section of the Kenya Railway Board members wants a substantive MD in place before the compensation process kicks off.

Also, the fresh petition filed by the Centre for Litigation Trust in August 2026 has reopened the controversy over Mainga’s tenure, days after an earlier case challenging his continued occupation of the office was withdrawn.

“The board wants a substantive Managing Director in place before the compensation process begins,” our source intimated.

The new petition seeks conservatory orders barring Mainga from making further substantive decisions as managing director and chief executive until the High Court determines whether he has a valid legal mandate to remain in office.

At the centre of the dispute is the contention that Mainga’s second three-year term expired on February 2, 2026, raising questions about the legal basis of his continued exercise of executive powers.

The Centre argues that the Government Owned Enterprises Act, 2025, which took effect on December 5, 2025, introduced a statutory framework governing the appointment and tenure of chief executives of state corporations.

It wants Kenya Railways and its board to produce the documents underpinning Mainga’s continued tenure, including appointment and renewal letters, board resolutions and any legal opinions relied upon to justify his stay in office.

Although the court has yet to determine the merits of the fresh petition, the dispute presents a potentially sensitive governance question for an institution overseeing a multibillion-shilling infrastructure project.

The timing is particularly significant because Kenya Railways is advancing preparations for compensation of people whose land is required for the railway’s construction.

Managing Director Mainga has said the National Land Commission is conducting public participation ahead of the payouts and has granted the corporation early access to some sections of land as valuation and negotiations with affected landowners continue.

The planned compensation programme is critical to securing public cooperation, facilitating access to construction sites and minimising disputes that could delay the project.

Affected communities have expressed willingness to participate in the process, with residents welcoming the railway’s potential to improve connectivity and open up economic opportunities across western Kenya.

The proposed railway will traverse Narok, Bomet, Nyamira, Kericho, Homa Bay and Kisumu counties, forming part of the wider Naivasha-Kisumu-Malaba SGR corridor.

Kenya Railways plans to establish logistics hubs and value-addition facilities along the route, supporting agricultural produce, livestock, tea, coffee, sugar and fish distribution. The line is also expected to strengthen links between production areas and the Port of Mombasa.

President William Ruto launched construction on March 19, 2026, with completion projected within approximately two years.

However, the leadership controversy could complicate public confidence in the management of the project if questions surrounding the chief executive’s authority remain unresolved as compensation and construction decisions advance.

The petitioner argues that decisions involving procurement, contracts, expenditure and public assets could create obligations whose validity may subsequently be challenged.