The government ha paid Rift Valley Railways (RVR) Ksh415 million for damages caused to their tracks during the 2008 post-election violence.
The payment, which had not been factored in in the 2016/17 budget, was made from the Standard Gauge Railways (SGR) project budget.
In a report that appeared on Business Daily on Sunday, the Ethics and Anti-Corruption Commission (EACC) revealed that the discovery was made during their investigation into alleged misappropriation of Ksh700 million meant for the implementation of a feasibility study of SGR, which was later conducted by the Chinese government for free.
“Investigation further revealed that part of the Ksh415 million was used to pay off claims submitted by the Rift Valley Railways for the damage caused to their railway line,” read the report in part.
According to Kenya Railways Managing Director Atanas Maina, the amount was meant to settle the debt for the damages and loss of business during that period.
Following the findings, EACC has recommended the closing of the file though calling for proper systems that would prevent misappropriation and theft of public funds.
Traders from Uganda and Rwanda are also pushing for compensation worth Ksh4.75 million for the loses they incurred during the period of the post-election violence after their goods from the Port of Mombasa failed to reach the market.
The violence which led to the death of close to 1,000 people and left hundreds of thousands displaced broke out after the announcement of disputed presidential results.
The results which indicated that Mwai Kibaki had won the elections, were strongly contested by key Opposition leader Raila Odinga of the Orange Democratic Movement leading to violence in Nairobi, Rift Valley, Nyanza and parts of Coast regions.
Pro-Raila youth in Kibera uprooted the railway line that passed through the area in protest of the results, the line has since been repaired.
The chaos led to the intervention by the international community and the African Union, with former United Nations Secretary General Kofi Annan spearheading a dialogue proceed that brought together teams from both Raila and Kibaki’s camps.
To end the political standoff, the two leaders agreed to form a coalition government with Raila as the prime minister and Kibaki as president.