Just days before he flew out to the United Kingdom, embattled Kenya Railways Managing Director Philip Mainga suffered a personal and financial embarrassment: he was swindled out of Ksh 750,000 by a security officer assigned to his own office.
The incident has fueled speculation and raised fresh questions about Mainga’s conduct, with some observers suggesting it may expose links to a shadowy money-laundering syndicate operating within state agencies.
Mainga, known in internal circles for his unusual preference for transacting in U.S. dollars, reportedly had $7,750 in cash stashed in his handbag on the day of the incident. According to sources close to the matter, a police officer attached to his security detail quietly outmaneuvered him and made off with the money.
The officer later exchanged the stolen dollars at an upscale foreign exchange bureau in Nairobi. Enraged and increasingly paranoid over repeated losses of what insiders describe as his “daily collections,” the MD launched a discreet investigation and paid to access CCTV footage from the exchange outlet. The footage reportedly confirmed the officer’s involvement.
Insiders say the stolen money is part of undeclared daily proceeds from Kenya Railways’ Commuter Rail services and the Standard Gauge Railway (SGR)—as well as alleged kickbacks from lucrative tenders tied to the multi-billion-shilling Railways City Project.
After confirming the theft, Mainga ordered the arrest of the rogue officer, who was briefly held at Railways Police Station. Strangely, however, Mainga later demanded his release and sought only the officer’s transfer. The officer has since been returned to a previous post within the Administration Police in Nairobi.
Multiple sources at Kenya Railways have revealed that the MD has since issued stern directives: junior officers are now barred from accessing his office without explicit permission. Remaining members of his security and support team have been warned in writing against any future misconduct or theft.
Yet this strange saga has left more questions than answers. It pulls the curtain back on deeper issues within Kenya Railways, a strategic state corporation that has for years faced scrutiny over corruption, procurement irregularities, and revenue leakage.
In Kenya, public officers found in possession of large amounts of unexplained cash may face serious consequences under the Proceeds of Crime and Anti-Money Laundering Act and Chapter Six of the Constitution on Leadership and Integrity. These laws require transparency, and transactions exceeding Ksh 1 million in cash must be reported to financial institutions and flagged to the Financial Reporting Centre (FRC).
The FRC is tasked with investigating suspicious financial transactions and helping combat illicit financial flows. Public officers are expected to demonstrate high levels of financial integrity, and failure to do so can trigger investigations, asset seizures, and prosecution.
As this latest scandal unfolds, the spotlight remains firmly on Philip Mainga—and on the systemic rot in Kenya Railways that many insiders say runs much deeper than one stolen handbag.
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