Kileleshwa in list of estates Railways targets for commercial use

Civil servants houses in Kileleshwa
Civil servants houses in Kileleshwa. FILE PHOTO | NMG 

Kenya Railways Corporation (KRC) is seeking change of user nod for some of its land from residential to industrial or commercial category to diversify its sources of revenue.

The corporation intends to convert its strategic estates such as Shimanzi, Manyimbo, Msaada, Kisingo and Kileleshwa from residential to mixed use in line with current zoning regulations in respective counties to achieve optimum use of land.

“While buildings depreciate in value overtime, land appreciates. Some buildings in Kenya Railways estates have become obsolete and the user to which they are in is not compatible to their locations,” Kenya Railways says in submissions to Parliament.

The KRC said refurbishment of such estates would not be viable since the buildings are derelict and therefore the need to upgrade the user.

“This change also earns the corporation revenue in form of salvage of existing buildings,” KRC said.


The corporation made the disclosures in the Treasury memorandum on the implementation status of the Public Investment Committee.

PIC recommended that the KRC managing director continue to put in place measures to ensure that the corporation is commercially viable to enable it meet its obligations and reduce reliance on government funding.

“The managing director confirms that some assets are underutilised and KR is in the process of identifying and putting to good use the idle assets. Some of them include former operational land, siding land, scrap metal, plant and equipment which will be sold to fetch for KR income,” Henry Rotich, the Treasury secretary, said in a report to Parliament.

KR said its Kenrail Towers in Nairobi’s Westlands is its first commercial development which is designed for a mix of retail and office development.