Kenya Railways Corporation Act

Section 1. Short title Section This Act may be cited as the Kenya Railways Corporation Act.

Section 2. Interpretation Section 2(1) In this Act, unless the context otherwise requires— "animals" means animate things of every kind except human beings; "authorized employee" means an employee authorized by the Managing Director to exercise the powers or perform the duties in respect of which the expression is used; "beacon" includes a light, mark or other structure erected by the Corporation for the purpose of navigation on inland waterways; "booking office" means a place at which tickets may be obtained or charges paid to the Corporation; "Chairperson" means the Chairperson of the Board appointed under section 4 ; "charges" means all sums received or receivable, charged or chargeable, for, or in respect of, the carriage or warehousing of goods by the Corporation or for, or in respect of, any vessel or inland waterways port or any other service performed or facilities provided by the Corporation; "consignee" means the person, firm or body to whom goods accepted for carriage by the Corporation are addressed; "consignment" means one or more packages of goods or a quantity of loose goods tendered for carriage by one consignor to one consignee by the Corporation; "consignor" means...

Section 3. Incorporation of Kenya Railways Section 3(1) There shall be established a Corporation to be known as Kenya Railways, in this Act referred to as the Corporation. Section 3(2) The Corporation shall be a body corporate with perpetual succession and a common seal and shall have power to sue and be sued in its corporate name and to acquire, hold and dispose of movable and immovable property for the purposes of the Corporation. Section 3(3) The headquarters of the Corporation shall be at Nairobi.

Section 4. Board of Directors Section a Chairperson of the Board appointed by the Cabinet Secretary;

Section 5. Managing director, deputy and secretary Section 5(1) There shall be a Managing Director of the Corporation who shall be appointed by the Cabinet Secretary after consultation with the Board and whose terms and conditions of service shall be determined by the Cabinet Secretary in the instrument of appointment or otherwise in writing from time to time. Section 5(2) The Board shall appoint a deputy managing director and a secretary of the Corporation whose terms and conditions of service shall be determined under sections 79 and 81 .

Section 6. Further provisions Section The First Schedule shall have effect with respect to the constitution or organization of the Board and otherwise in relation thereto.

Section 7. Remuneration of directors Section The Corporation shall pay to the directors such remuneration, fees or allowances for expenses as may be determined by the Cabinet Secretary: Provided that no remuneration, fees or allowances for expenses shall be paid to any director who is a public officer in receipt of a salary.

Section 8. General duty of the Board Section 8(1)(a) rail and inland waterways transport services; Section 8(1)(b) port facilities in relation to inland waterways transport services; and Section 8(1)(c) auxiliary road services in connection therewith. Section 8(2)(a) the fullest development, consistent with economy, of the undertaking of the Corporation; Section 8(2)(b) that the undertaking of the Corporation is operated efficiently, economically and with due regard to safety; Section 8(2)(c) that the financial administration of the Corporation is conducted in accordance with Part V; Section 8(2)(d) that the Corporation provides all reasonable facilities for the carriage of passengers and goods; and Section 8(2)(e) that no particular person or body is given undue preference or subjected to any undue disadvantage.

Section 9. Management Section Subject to this Act, the control and executive management of the Corporation shall be vested in the Managing Director.

Section 10. Powers of the Managing Director Section establish and operate rail, road and inland waterways transport services and facilities relating thereto;

Section 11. Powers of the Board Section approve any minor alteration in tariffs, rates, fares and other charges;

Section 12. Powers of the Cabinet Secretary Section give directions of a general nature to the Board relating to the operation of the undertaking of the Corporation;

Section 13. Powers of the Corporation as a statutory body Section 13(1)(a) to carry goods and passengers by rail, road and inland waterways within Kenya; Section 13(1)(b) for the towage, protection or salvage of life and property; Section 13(1)(b)(i) for the towage, protection or salvage of life and property; Section 13(1)(b)(ii) for the carriage of goods and passengers; Section 13(1)(c) to store goods within Kenya, whether or not such goods have been, or are to be, carried by the Corporation; Section 13(1)(d) to consign goods on behalf of other persons from any place within Kenya to any other place whether within Kenya or elsewhere; Section 13(1)(e) to provide within Kenya, both for the passengers carried by the Corporation and other persons, hotels, other living accommodation and places of refreshment; Section 13(1)(f) to provide within Kenya such other amenities or facilities for passengers carried by the Corporation and other persons making use of the services performed or the facilities provided by the Corporation as may appear to the Board necessary or desirable. Section 13(2)(a) to construct or improve any railway, inland waterways port, ferry, road, bridge, building or any...

Section 14. Acquisition of land for the purposes of the Corporation Section 14(1)(a) if such land is not public land, acquire such land through negotiation and agreement with the registered owner thereof: Provided that, notwithstanding the provisions of section 6 of the Land Control Act ( Cap. 302 ), the ensuing transaction shall not require the consent of a land control board if the land to be acquired is agricultural land; or Section 14(1)(b) if such land is public land, or if the Corporation is unable to acquire it by agreement in accordance with paragraph (a) of this subsection, notify the Cabinet Secretary responsible for public lands that the land specified in the notice is required for the purposes of the Corporation. Section 14(2)(a) if the land is public land, the Cabinet Secretary responsible for Lands may, in his discretion and upon such terms and conditions as he may think fit, place such land at the disposal of the Corporation for the purposes of the Corporation; Section 14(2)(b) if the land is not public land, any provision in any written law which empowers the President or the Cabinet Secretary responsible for Lands to acquire or direct the acquisition of such land f...

Section 15. Power to enter land to survey, etc. Section 15(1)(a) any land and survey such land or any portion thereof; Section 15(1)(b) excavate, take away and use any earth, stone, gravel or similar materials out of such land; Section 15(1)(b)(i) excavate, take away and use any earth, stone, gravel or similar materials out of such land; Section 15(1)(b)(ii) cut, take away and use any timber on such land. Section 15(2) Where any materials or timber are taken away in, or any damage is caused by reason of, the exercise of the powers conferred by this section, the owner or occupier of the land shall be entitled to compensation therefor in accordance with this Act.

Section 16. Power to enter land to prevent accidents, etc. Section 16(1)(a) cut down or remove any tree or other obstruction not being a building, which obscures the view of any fixed signal or beacon or which is likely to cause any obstruction or danger to any such transport service; and Section 16(1)(b) execute such other works as may be necessary to prevent the occurrence of any accident or to repair any damage caused as a result of any accident. Section 16(2) If any tree or other obstruction cut down or removed under subsection (1)(a) came into existence subsequent to the transport services being provided at that place then no compensation shall be payable in respect of such entry or the cutting down or removal of such tree or other obstruction. Section 16(3) Where any person erects any building which obscures the view of a fixed signal or is likely to cause any obstruction or any danger to any rail or transport service provided by the Corporation, the Corporation may, unless such person has previously obtained the approval of the Managing Director to the erection of such building or has modified it to the satisfaction of the Managing Director, apply to a judge of the High Cour...

Section 17. Power to enter land to alter position of pipes, etc. Section 17(1) Subject to this section the Corporation, or any authorized employee may, for the purposes of the Corporation, enter upon any land and alter the position of any pipe for the supply of gas, oil, water or compressed air or the position of any electric telephone or telegraphic wire or the position of any drain. Section 17(2)(a) such authority or person may authorize a representative to superintend such work and may require the Corporation to execute such work to the satisfaction of such representative; Section 17(2)(b) the Corporation shall make arrangements for the maintenance of the supply of gas, oil, water, compressed air or electricity, for the continuance of the telephone or telegraph communications or for the maintenance of the drainage, as the case may be, during the execution of such work. Section 17(3) Where any damage is caused by reason of the exercise of the powers conferred by this section, the person suffering such damage shall be entitled to compensation therefor in accordance with this Act. Section 17(4) This section shall not apply to any oil pipeline owned or operated by the Kenya Pipeline...

Section 18. Power to take water Section if there is any law regulating the taking of any such water, to the provisions of that law;

Section 19. Provision of transport services, etc., other than by the Corporation Section no rail transport services shall be provided; and

Section 20. Accommodation works Section such crossings, bridges or other works as, in the opinion of the Board, are necessary for the purpose of making good any interruption caused by the construction of the railway to the use of the lands through which the railway is constructed;

Section 21. Additional accommodation works Section the owner or occupier of any lands on which a railway is constructed desires any accommodation works in addition to those, if any, constructed by the Corporation under section 20 ; or

Section 22. Constructions of railway crossing public road Section 22(1) Where, in the exercise of powers under this Act, the Corporation proposes to construct a railway across a public road, the Cabinet Secretary responsible for public lands may, subject to subsection (3), require the Corporation to construct the railway in such a manner that it does not cross such road on the level and to execute such other works as may be necessary for the safety of the public and the Corporation shall comply with such requirements. Section 22(2)(a) to erect such gates; or Section 22(2)(b) to raise or lower the level of the public road so that it crosses the railway above or below and not on the level, Section 22(3) The Cabinet Secretary responsible for public lands shall, before making any requirement under this section, communicate with the Corporation and the authority responsible for the maintenance of such public roads and shall take into consideration any representations made by the Corporation or that authority. Section 22(4) Where, as a result of a requirement made by the Cabinet Secretary responsible for public lands under this section, any works are to be constructed by the Corporation,...

Section 23. Certification of a new railway Section 23(1) Before any section of a new railway is declared open for the public carriage of passengers or goods, the Chief Engineer of the Corporation or such other qualified person as the Managing Director may appoint in that behalf shall furnish a certificate that such section complies with the standards laid down by the Corporation and may, in the opinion of such engineer or other person, be opened for the public carriage of passengers or goods without danger to the public; and upon such certificate being furnished, the Corporation may by notice in the Gazette declare the section to which the certificate refers to be open for such purposes. Section 23(2) Nothing in subsection (1) shall prohibit the Corporation from carrying passengers or goods on a railway in the course of construction or before it has been so declared open but, in such case, the Corporation shall not be liable for the death of, or injury to, any passenger or for the loss of, or damage to, any goods occasioned in the course of such carriage. Section 23(3) For the purpose of this section, the expression "new railway" does not include any diversion or re-alignment of tr...

Section 11A. Concessioning of the railways Section 11A(1) Notwithstanding any other provision of this Act, the Board may enter into an agreement with a person appointed in accordance with this section, for the performance of any of its functions or the exercise of any of its powers under this Act by that person. Section 11A(2) An agreement under subsection (1) may take the form of a concession, lease or management contract. Section 11A(3) The Board shall appoint the person for the purposes of an agreement under this section (hereafter referred to as "the appointed person") through competitive tendering in accordance with the law for the time being applicable to the procurement of public services. Section 11A(4)(a) be subject to the approval of the Cabinet Secretary; Section 11A(4)(b) specify the functions or powers of the Board to be performed or exercised, as the case may be, by the appointed person and those to remain the responsibility of the Board during the term of the agreement; Section 11A(4)(c) set out the terms and conditions applicable to the transfer of any of the employees of the Corporation recruited by the appointed person for the purposes of the agreement; and Sectio...

Section 56.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 57.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 58.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 59.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 60.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 61.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 62.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 63.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 64.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 65.[Repealed by ActNo. 4 of 2009, s. 454.]

Section 24. Principles of operation Section 24(1) It shall be the duty of the Corporation to conduct its business according to commercial principles and to perform its functions in such a manner as to secure that, taking one year with another, its gross revenue is not less than sufficient to meet its outgoings which are properly chargeable to revenue account including proper allocations to the general reserve and provisions in respect of depreciation of capital assets, pension liabilities, and interest and other provision for the repayment of loans, and further to ensure that, taking one year with another, its net operating income is not less than sufficient to secure an annual return on the value of the net fixed assets in operation by Corporation of such a percentage as the Cabinet Secretary may direct from time to time. Section 24(2)(a) "net operating income" shall be determined by subtracting from gross operating revenue all operating and administrative expenses including adequate provision for maintenance and depreciation but excluding interest and other charges on debt; Section 24(2)(b) "value of the net fixed assets in operation" shall be the gross value of those assets less...

Section 25. Borrowing powers Section 25(1) The Corporation may borrow money by the issue of loan stock on such terms as may be approved by the Cabinet Secretary responsible for finance. Section 25(2) The Corporation may otherwise borrow money or obtain credit in Kenya or abroad for the purposes of the Corporation with the concurrence of, and subject to such limitations as may be imposed by, the Cabinet Secretary responsible for finance. Section 25(3) Such stock issued under the provisions of subsection (1) and such moneys borrowed or credit obtained under the provisions of subsection (2) as the Cabinet Secretary responsible for finance shall approve for the purposes of this subsection, and all interest and other charges payable in respect of such stock, moneys or credit, shall, unless the instrument or note evidencing or supporting such borrowing shall otherwise provide, be charged upon all the property, undertakings and revenue of the Corporation by operation of this section and without further charge or instrument. Section 25(4) Any stock issued by the East African Railways Corporation which, by virtue of any order made under subsection (4) of section 95 , becomes the liability o...

Section 26. Annual accounts Section 26(1) The Board shall ensure that proper accounts and other records are kept in relation to the revenue and expenditure of the Corporation and shall ensure that, within six months of the end of each financial year of the Corporation or such longer period as the Cabinet Secretary may allow in any particular case, a statement of accounts of the Corporation is prepared in accordance with the best commercial standards and any directions which may be issued by the Cabinet Secretary, and transmitted to the Auditor-General. Section 26(2) The accounts of the Corporation and of all officers and authorities of the Corporation shall be audited by the Auditor-General and for that purpose the Auditor-General or any person authorized by him in that behalf, whether or not a public officer, shall have access to all books, records, returns and other documents relating to those accounts and upon receipt of a statement of accounts transmitted to him under subsection (1), the Auditor-General shall examine it, certify it and report on it and shall return the statement with his certificate and report to the Board within sufficient time to enable compliance with subsec...

Section 27. Annual report and financial year Section 27(1) The Board shall, within nine months after the end of each financial year, prepare a report upon the operation of the Corporation during that year and shall transmit such report to the Cabinet Secretary who shall cause the same to be presented to Parliament together with the statement of accounts and report of the Auditor-General referred to in section 26 . Section 27(2) The financial year of the Corporation shall run from the 1st January to the 31st December in each year. [Act No. 18 of 1986 , Sch.]

Section 28. Liability for loss of life, etc., of passengers Section 28(1) The Corporation shall not be liable for the loss of life of, or for personal injury to, any passenger except where the loss of life or personal injury is caused by the want of ordinary care, diligence or skill on the part of the Corporation or of any employee: Provided that nothing herein shall impose upon the Corporation any liability from which it is exempt under this Act or any other written law. Section 28(2)(a) who is travelling, whether with or without permission, in any part of a train, vessel or vehicle other than parts normally provided for the use of passengers while travelling; Section 28(2)(b) who is travelling on a free pass; Section 28(2)(c) who is travelling over a railway in the course of construction whether with or without permission; Section 28(2)(d) who, at the time the loss of life or injury occurred, is being carried by any transport service other than one provided by the Corporation or under the control of the Board, Section 28(3)(a) act of God; Section 28(3)(b) act of war; Section 28(3)(c) fire or accident from machinery, boilers or steam; Section 28(3)(d) any peril or accident of the...

Section 29. No liability for delay in arrival of passengers, etc.

Section 30. Liability for loss of goods Section 30(1)(a) act of God; Section 30(1)(b) act of war; Section 30(1)(c) seizure under legal process; Section 30(1)(d) act or order of the Government; Section 30(1)(e) act or omission of the consignor, his servant or agent; Section 30(1)(f) inherent liability to wastage in bulk or weight, latent or inherent defect, vice or natural deterioration of the goods; or Section 30(1)(g) casualty including fire or explosion: Section 30(2) The Corporation shall not be liable for loss, misdelivery or damage in respect of goods in relation to which an account false in any material particular has been given under section 46 or any incorrect or insufficient address for delivery has been given and such loss, misdelivery or damage is in any way caused by such false account or incorrect or insufficient address. Section 30(3)(a) where there has been fraud on the part of the consignor; Section 30(3)(b) unless a document acknowledging receipt of such goods for carriage by the Corporation has been given; Section 30(3)(c) which at the time loss, misdelivery or damage occurred are being carried by any transport service other than one provided by the Corporation or...

Section 31. Liability for delay, etc., of goods Section where there has been fraud on the part of the consignor;

Section 32. Limitation of liability for animals Section 32(1) The liability of the Corporation in respect of any animal shall not in any case exceed the appropriate amount set out in the Tariff Book, unless at the time of the acceptance of such animal by the Corporation for carriage the consignor, or his agent, declared that the value of the animal exceeded such appropriate amount and paid, or agreed to pay, such additional charges as may be determined in the Tariff Book in respect of such excess value, and thereupon the liability of the Corporation shall not in any case exceed the declared value. Section 32(2) In every proceeding against the Corporation for the recovery of any sum in respect of any animal, the burden of proving the value of the animal and, where the animal has been injured, the extent of the injury, shall be upon the claimant.

Section 33. Limitation of liability for loss, etc., of specific articles Section 33(1) The liability of the Corporation in respect of any article or articles specified in the Second Schedule, and contained in any parcel or package, shall not, in any circumstances, exceed one thousand shillings unless at the time of acceptance of such parcel or package by the Corporation for carriage the consignor or his agent declared that the value of such article or articles exceeded one thousand shillings and paid, or agreed to pay, such additional charges as may be determined in the Tariff Book in respect of such excess value; and thereupon the liability of the Corporation shall not in any case exceed the declared value. Section 33(2) It shall be a condition of the carriage of any parcel or package containing any article or articles the value of which has been declared to be in excess of one thousand shillings that the contents of such parcel or package may be inspected by an authorized employee at the time of such declaration. Section 33(3) In any proceedings against the Corporation for the recovery of any sum in respect of any article or articles the value of which has been declared to be in...

Section 34. Limitation of liability for loss, etc., where false account given Section The liability of the Corporation in respect of any goods carried by the Corporation in relation to which an account false in any material particular has been given under section 46 shall not in any case exceed the value of the goods as calculated in accordance with the description contained in such false account.

Section 35. Limitation of liability by contract Section 35(1) The liability of the Corporation under this Act for the carriage of goods by the Corporation shall not be limited in any manner otherwise than by contract made in accordance with the provisions of this section: Provided that nothing in this section shall apply to a contract for the carriage of goods by vessel. Section 35(2) A contract purporting to limit the liability of the Corporation under this Act for the carriage of goods by the Corporation shall, to the extent to which it purports to limit such liability but not otherwise, be void unless it is in writing signed by or on behalf of the person delivering the goods to the Corporation.

Section 36. Liability for loss of goods, etc. Section delivered to, or in the custody of, the Corporation otherwise than for the purpose of carriage;

Section 37. Limitation of liability for loss, etc., of goods deposited in cloakroom Section 37(1) The liability of the Corporation for any loss or misdelivery of, damage to or delay in the delivery of any goods deposited in a cloakroom shall not in any case exceed two hundred shillings unless at the time of such deposit the person depositing the goods declared that the value thereof exceeded that amount and paid, or agreed to pay, such additional charge as may be determined in the Tariff Book in respect of such excess value; and thereupon the liability of the Corporation shall not in any case exceed such declared value. Section 37(2) For the purposes of this section the expression "cloakroom" means any place provided by the Corporation in connection with the transport services provided by the Corporation as a facility for the temporary deposit of goods by passengers and other persons.

Section 38. Corporation may determine conditions for the carriage of passengers and luggage Section 38(1)(a) determine the conditions upon which passengers and luggage shall be carried by the Corporation and different conditions may be determined in different cases; and such conditions shall be published in the Tariff Book and shall, subject as aforesaid, have effect from the date of such publication or from such later date as may be specified therein; Section 38(1)(b) determine the rates, fares and charges for the carriage of passengers and luggage by the Corporation and such rates, fares and charges shall be published in the Tariff Book and shall, subject as aforesaid, have effect from the date of such publication or from such later date as may be specified therein: Section 38(1)(c) determine the different classes of accommodation available to passengers in trains, vessels or vehicles of the Corporation. Section 38(2)(i) such conditions, rates, fares and charges shall as soon as practicable after such determination be published in the Tariff Book; and Section 38(2)(ii) the determination of such conditions, rates, fares and charges shall not of itself constitute an undue preferenc...

Section 39. General right of persons to be carried as passengers Section to be suffering from any mental disorder;