Audit Flags Missing Rail Revenue and 529 Grabbed Kenya Railways Land Parcels
Written on
Kenya Railways is struggling to account for hundreds of land parcels and millions in rental income. A new audit raises fresh concerns about governance, asset management, and public property protection.
A new audit of Kenya Railways has uncovered major concerns over land ownership records, rental income tracking, and internal controls. The Auditor-General issued a qualified opinion on the corporation’s 2025 financial statements, citing unsupported land records, unreconciled rental revenue, and weaknesses in asset management systems.
Among the most significant findings were 529 illegally allocated land parcels across several towns and a rental income discrepancy of nearly KSh520 million. The audit also noted that Kenya Railways lacks complete documentation for numerous land holdings and continues to face challenges in monitoring its vast property portfolio.
The findings matter because Kenya Railways controls some of the country's most strategically located urban land, making effective management critical for both public revenue and future development opportunities. Experts say the report highlights the need for stronger governance, better land registration systems, and improved oversight of public real estate assets.
The audit comes even as Kenya Railways reports improving operational performance, underscoring the growing gap between commercial progress and asset management accountability.