The Kenyan government has confirmed that a consortium of Chinese firms will finance and operate the remaining 40 percent of the Standard Gauge Railway (SGR) extension from Naivasha to Malaba. These firms will impose a toll system to recover their investment.
Speaking before the Budget and Appropriations Committee (BAC), Treasury Cabinet Secretary John Mbadi revealed that negotiations with Beijing-based companies are ongoing to finalize funding for the critical phase. The project aims to complete Kenya’s modern railway network, 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.”
Launched in 2013, the SGR is one of Kenya’s most significant infrastructure projects, with the Mombasa-Nairobi stretch alone costing $3.6 billion. The planned extension will pass through Narok, Bomet, Kericho, and Kisumu, with modifications at Kisumu Port to enhance regional trade.
The government has already begun mapping settlements and assets along the 255-kilometre route to facilitate compensation and resettlement. Additionally, the plan includes constructing two multipurpose berths at Kisumu Port to accommodate larger cargo vessels.
Both Kenya and Uganda remain committed to extending the railway into Kampala, Rwanda, and the Democratic Republic of Congo, strengthening the SGR as a key regional trade corridor.
