Published on May 7, 2026 by Kariuki Mwangi
Last Updated on 1 month by Kariuki Mwangi
Financial expert Bramuel Burali is set to sue Kenya Railways Managing Director and the agency’s board over what he terms as deliberate and well ochestrated schemes by Mainga and team to siphon billions of shillings through Standard Gauge Railway (SGR ) schemes.
He is also calling for an independent scrutiny as a follow up on an explosive audit findings that exposed billions of shillings lost through controversial dollar-denominated deals linked to SGR.
Bramuel claims that the MD and KR must have compromised parliament to water down the effects of the troubling picture of questionable financial management, opaque contracts, and possible violations of the Public Finance Management (PFM) Act.
At the center of the storm are payments made in US dollars to SGR operator Afristar, transactions auditors say exposed taxpayers to massive foreign exchange losses as the Kenyan shilling weakened.
He says he has evidence Mainga ad team made over Ksh.360 million profits stashed in foreing accounts.
He argues that such high-value transactions could not have occurred without the knowledge or approval of top leadership within Kenya Railways.
According to the audit, Kenya Railways posted losses estimated at nearly Sh50 billion while simultaneously accumulating penalties tied to defaulted loans from China Exim Bank.
The report further revealed that approximately Sh64 billion was allegedly spent on the Nairobi-Naivasha SGR extension years after construction had officially been completed in 2019.
Auditor-General Nancy Gathungu questioned the legality and accountability of the transactions, warning that the losses represented a direct burden on taxpayers.
The audit also faulted management for failing to hedge against foreign exchange risks despite operating under expensive dollar-based contracts.
Analysts say the findings reinforce long-standing concerns that the SGR project became a vehicle for financial leakage rather than the transformative infrastructure project it was marketed to be.
“The scale of these losses points to institutional complicity at the highest levels,” said one governance analyst familiar with state infrastructure audits.
“You cannot move billions in dollar contracts without executive authorization and internal approvals.”
The audit had renewed calls for criminal investigations into procurement decisions, operational contracts, and revenue management arrangements involving Afristar and Kenya Railways executives.
Mainga ia said to have compromised the Parliament’s Public Investments Committee which was expected properly grill current and former officials to explain how billions were committed under contracts that allegedly violated public finance laws.
The scandal comes amid growing public frustration over Kenya’s debt burden linked to the Chinese-funded railway project.
Earlier audit findings also accused the Kenya Ports Authority of unlawfully retaining billions in SGR freight revenue, further worsening loan repayment defaults.
The SGR, once celebrated as Kenya’s flagship infrastructure project under Vision 2030, now faces increasing criticism over its financial sustainability, procurement secrecy, and operational costs.
Civil society groups and opposition leaders are now demanding full disclosure of all SGR contracts, including agreements signed with Chinese contractors and operators.
As pressure builds, many Kenyans are asking whether accountability will finally reach the top leadership that oversaw one of the country’s most expensive public projects.
