Kenya Railways Managing Director Philip Mainga is facing mounting scrutiny after allegations emerged that he received bribes and promises of monthly kickbacks to influence the award of a lucrative insurance brokerage tender covering the multi-billion shilling Standard Gauge Railway assets.
The tender, KR/SCM/006/2025–2026, sought the Provision of General Insurance Brokerage Services for SGR Assets, a contract considered one of the most valuable risk management deals within the transport sector given the scale of the railway infrastructure and rolling stock.
According to procurement documents, the contract was advertised through an open competitive tendering process by Kenya Railways Corporation, inviting qualified firms to bid for the brokerage services.
However, fresh claims now suggest the procurement process may have been compromised and pre determined following meetings between Mainga and representatives of the leading insurance company.
Sources familiar with the tender process allege that senior officials within the corporation, including the Managing Director, were approached by representatives of the leading insurance firm seeking to secure the brokerage deal.
At least Ksh 5 million is said to have been given to the MD who is also facing scrutiny over other procurement processes.
Investigators are said to be examining claims that the firm promised substantial upfront payments and a monthly financial arrangement in exchange for influence over the tender evaluation process.
The alleged arrangement, insiders claim, was meant to ensure the company emerged as the preferred bidder despite stiff competition from other brokerage firms.
The SGR insurance brokerage contract is considered highly lucrative due to the massive value of the railway assets, including locomotives, passenger coaches, cargo wagons, signalling systems and rail infrastructure running between Nairobi and the coast.
The tender required bidders to submit a KSh6 million tender security, either through a bank guarantee or an insurance bond issued by a company registered with the Insurance Regulatory Authority.
Industry players now say the allegations risk undermining confidence in public procurement within the rail sector.
“The SGR assets are worth billions. Any attempt to manipulate the brokerage contract raises serious governance and accountability concerns,” said a procurement expert familiar with large infrastructure insurance programs.
Under Kenyan procurement law, tender processes must comply with strict transparency rules overseen by the Public Procurement Regulatory Authority.
Insurance brokerage services for the SGR involve arranging and managing coverage for risks such as accidents, infrastructure damage, cargo loss, and operational liabilities linked to the railway system operated by Kenya Railways.
Given the value of the assets and the scale of operations, the brokerage commission alone can run into hundreds of millions of shillings over the life of the contract, making it one of the most contested tenders in the transport sector.
Anti-corruption watchdogs and industry stakeholders are now calling for investigations by the Ethics and Anti-Corruption Commission to establish whether the procurement process was compromised.
If the claims are proven, the scandal could expose senior officials at the state corporation to charges related to abuse of office, procurement fraud, and bribery.
Kenya Railways has yet to issue an official response to the allegations.
The controversy comes at a sensitive time as the government pushes to expand the Standard Gauge Railway network further inland toward Kisumu and Malaba, projects expected to require significant financial oversight and transparency.