Wed Sep 25 04:10:41 UTC 2024: ## Kenya Railways Seeks Diesel Supplier for Metre Gauge Railway and MV Uhuru

**Kisumu, Kenya** – The Kenya Railways Corporation (KRC) is seeking a supplier for a multi-billion-shilling contract to provide diesel fuel for its metre gauge railway and the MV Uhuru vessel, which operates on Lake Victoria. KRC requires an estimated 14.64 million litres of diesel annually to keep its operations running, representing a potential contract worth Sh2.5 billion based on current market prices.

The corporation’s monthly diesel requirement is 1.22 million litres, distributed across its depots in Changamwe, Makadara, Sagana, Eldoret, Nakuru, Kisumu, and for the MV Uhuru. The metre gauge railway serves Nairobi and its surrounding areas, as well as long-distance routes to Nanyuki and Kisumu.

The MV Uhuru, which was refurbished in 2019 by the Kenya Defence Forces, transports petroleum products from Kisumu port to Uganda. The vessel has a capacity of 1,100,000 litres of fuel.

Despite the potential lucrative contract, passenger transit revenue on the metre gauge railway has declined. During the first half of this year, revenue dropped by 6.2% to Sh84.2 million, attributed to a 25.5% decline in passenger numbers.

However, the Kisumu long-haul train service, relaunched in December 2021, has proven successful, generating Sh17.3 million in revenue and carrying over 21,000 passengers. The Nairobi-Ruiru route is the second-most profitable, earning Sh15.7 million.

Oil marketers are expected to fiercely compete for the lucrative diesel supply contract, which is vital for maintaining KRC’s operations and delivering essential services to the country.

Read More