Mr Kimunya said the Cabinet last week approved the construction of a new, modern, standard gauge railway from Mombasa to Kampala to enhance the movement of goods and passengers within the region.
When complete, the high-speed railway is expected to reduce the cost of transporting bulky goods.
The project would bring reprieve to road users by minimising heavy trucks on the road.
Kenya Railways chairman Jeremiah Kianga said the government was targeting to construct 28 railway stations and nine corridors to ease traffic congestion.
Motorists and other road users will be charged more under new efforts by the government to raise money for rolling out more railway facilities. Transport minister Amos Kimunya on Tuesday said that the Cabinet had approved the setting up of a Railway Development Fund for expansion and maintenance of railway services.
“We are looking at introducing a range of levies such as fuel levy, taxing of heavy trucks to discourage them from using the road and other innovative sources because there will be no funds coming from Treasury,” said Kenya Railways Corporation managing director Nduva Muli.
The fund would also form the seed capital when borrowing from development partners for railway projects that are deemed critical in decongesting roads and slowing down the wear and tear of highways that has been blamed on heavy commercial vehicles.
“We are looking at being able to negotiate for loans using the fund by for instance borrowing a multiple of expected collections,” said Mr Kimunya. The fund would be modelled on the Road Levy Fund whose collections reached Sh25 billion last year.
Motorists pay Sh3 per litre of petrol for the road levy which could not rise substantially to accommodate new financing demands from the rail and sectors.
The government has already indicated that it will start charging motorists fees for use of the Thika Superhighway besides the levy which is paid at filling stations.
Mr Kimunya said the Fund would help the Kenya Railway Cooperation service the debts it was accumulating because revenues from rail services would be inadequate.
The two were speaking during the official opening of the Syokimau Railway Station where President Kibaki was the chief guest. The commuter railway line that links Syokimau and the CBD is targeted at easing congestion on Mombasa Road.
However, the viability of the commuter rail service that will be run by Rift Valley Railways (RVR) has been put into doubt by its middle class positioning.
Passengers will pay Sh100 one way for a 16.5 kilometre journey that should take 30 minutes against upto two hours by road. The station is also providing car parking at Sh100 a day.
RVR managing director Brown Ondego said the Sh100 fee was less than the cost of running the service. Matatu fares for the section are about Sh50 one way.
Mr Kibaki said the extra funding would also be invested in training manpower for the rail business. He challenged technical training institutions to introduce courses that would train students in the construction and operation of rails and railway stations.
Mr Kimunya said that the government is negotiation with the China Exim Bank for money for the construction of the Mombasa-Nairobi railway line which is scheduled to start next year.
“We are waiting for finalisation of the funding process which should be completed by the end of the year before the project can start,” said Mr Kimunya.
A route has been identified for the construction of a standard gauge railway from Nairobi to Malaba and a feasibility study funded by the government of China was ongoing.
Kenya Railways is also looking for a consultant to design a standard gauge railway line running parallel to Jogoo Road.
Mr Kimunya said the Cabinet last week approved the construction of a new, modern, standard gauge railway from Mombasa to Kampala to enhance the movement of goods and passengers within the region.
When complete, the high-speed railway is expected to reduce the cost of transporting bulky goods.
The project would bring reprieve to road users by minimising heavy trucks on the road.
Kenya Railways chairman Jeremiah Kianga said the government was targeting to construct 28 railway stations and nine corridors to ease traffic congestion.
