The Kenyan government has confirmed that a consortium of Chinese firms will finance and operate the final 40 percent of the Standard Gauge Railway (SGR) extension from Naivasha to Malaba, imposing a toll for usage to recoup their investment.
Speaking before the Budget and Appropriations Committee (BAC), Treasury Cabinet Secretary John Mbadi stated that discussions with Beijing-based firms are ongoing to finalize funding for this critical phase. The project aims to complete Kenya’s modern railway network, eventually linking Mombasa to Uganda and beyond.
“We are negotiating with Chinese companies to fund the last leg of the SGR,” Mbadi stated. “The financing structure will see 30 percent sourced externally, another 30 percent (or Sh45 billion annually) funded by the government, while the remaining 40 percent will be covered by Chinese firms through a toll system.”
The SGR project, launched in 2013, is one of Kenya’s largest infrastructure investments, costing $3.6 billion for the Mombasa-Nairobi stretch alone. The new extension will traverse Narok, Bomet, Kericho, and Kisumu, with provisions for modifications at Kisumu Port to enhance regional trade.
The government has already begun mapping out settlements and assets along the 255-kilometre route to facilitate compensation and resettlement. The plan also includes two multipurpose berths at Kisumu Port, designed to accommodate larger cargo vessels.
Both Kenya and Uganda remain keen on extending the railway into Kampala, Rwanda, and DR Congo, solidifying the SGR as a key regional trade corridor.
With a completion timeline yet to be disclosed, the project’s financing model signals a strategic shift towards private investment in Kenya’s infrastructure development.
