Nairobi, March 4 -- The Rift Valley Railways (RVR) has been sued for a possible breach of contract by two companies in what could see the taxpayer part with Sh288.84 billion in fines.

The development comes as Kenya is locked in a legal battle with KU Railways Holdings (KURH) Limited, formerly Sheltam Rail Company (PTY) Limited, and RVR Investments (RVRI) Limited over breach of contract for the construction and management of the over 100-year-old metre gauge railway.

At the centre of the court battle is a $2 billion claim by the two companies, which are suing both the Kenyan and Ugandan governments over the project linking the two countries.

Attorney-General Justin Muturi is leading the legal team representing the government during the ...