Sessional Paper No. 05 of 1993 on Government Guarantee of a Lease Agreement Between Trans trade (Proprietary) Ltd and Investec Bank Ltd of South Africa and Kenya Railways Corporation.

Abstract

Kenya Railways Corporation is faced with inadequate locomotive availability, as a result of which hauling capacity has declined by almost 30. As a result Kenya Railways Corporation has accordingly studied several options for short term measures to address the problem including: Stepping up spares supply to reclaim immobilised locomotives, Re-powering some of the existing locomotives whose availability have declined due to age and abselensence, Leasing10 No type 9 locomotives to improve hauling capacity until a more permanent motive power is established. With the full support of the Government the Kenya Railways Corporation has entered into a lease agreement with Transtrade (the Commercial Arm of Spoornet and Investec Merchant Bank Ltd of South Africa (appointed by Transtrade to handle financial interest in the agreement) for the lease of 10 locomotives...