Kenyan SGR extension heads from Naivasha to Malaba

The Kenyan SGR extension entered its next construction phase on March 19. Also, Railway Supply reported President William Samoei Ruto attended the launch west of Naivasha.

Kenyan SGR extension route to Kisumu and Malaba

The new construction spans 264km from Naivasha, northwest of Nairobi, to Kisumu. In addition, the plan includes an 8.7km branch to the new Kisumu Port.

Meanwhile, the SGR will continue another 107km west to Malaba. There, it will join the Ugandan SGR now under construction to Kampala.

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At the same time, the launch drew other senior officials. They included prime cabinet secretary Dr Musalia Mudavadi. Also, cabinet secretary for roads and transport Davis Chirchir attended. Separately, CCCC chairman Song Hailiang was also present.

Funding model and earlier SGR sections

Separately, Kenya’s first two SGR phases totalled 592km. They opened between Mombasa and Nairobi in 2017. They also opened between Nairobi and Naivasha in 2019. Also, Chinese companies largely financed and built both sections.

Also, Rail Journal notes Reuters reported CCCC will build the next phase. Meanwhile, financing will come through revenue securitisation. At the same time, this marks a shift in Beijing’s funding of major infrastructure projects.

Kenya plans to use a railway development levy. It will apply to freight consignments carried on the existing line. For example, it is estimated at about $US 270m annually. It will serve as seed capital for the construction of further phases.

Still, previous estimates put the Naivasha – Malaba line at $US 5.3bn. The government and Kenya Railways Corporation (KRC) have not confirmed final cost or funding details.

Meanwhile, Kenya renegotiated the terms of its $US 5bn Chinese loan last year. It was used for the first two SGR sections. The move was meant to reduce annual repayments.

Separately, Ruto said talks were under way earlier this year. They involved the government of the United Arab Emirates (UAE). He spoke during a visit to Abu Dhabi. The talks were about financial support for the remaining sections between Naivasha and Malaba.

Uganda SGR link to Kampala

In Uganda, construction of the electrified 273km Uganda Eastern Railway Line began in November 2024. It links Kampala with Malaba.

In February, officials from the Islamic Development Bank (IsDB) visited the country. Also, they discussed a proposed €405m contribution. Also, Rail Journal notes an estimated project cost of $US 2.7bn.

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