Updated on November 21, 2025- Kenya is expected to kick off the construction works of the Standard Gauge Railway (SGR) extension from Naivasha to Malaba in January 2026. This was announced by Kenya’s President William Ruto on Thursday. This railway project comes in as a strategic move that will accelerate regional integration and transform trade logistics across East Africa.
The announcement came during President Ruto’s annual State of the Nation Address at Parliament in Nairobi. Ruto framed the railway project as a “national imperative” and reaffirmed Kenya’s commitment to positioning itself as a regional infrastructure and logistics hub.
“This infrastructure drive will also include extending the Standard Gauge Railway from Naivasha to Kisumu and eventually to Malaba beginning in January 2026,” Ruto told lawmakers, citing the project as central to Kenya’s long-term transport modernization agenda.
The SGR extension to Malaba will be 262 kilometres long. It will close a critical gap in the region’s Northern Corridor, linking the Port of Mombasa to Uganda’s upcoming SGR line and onward to Rwanda, South Sudan, and eastern DR Congo.
Uganda signed a $2.2 billion contract in early 2025 with Turkish firm Yapi Merkezi to build the Malaba–Kampala section of its SGR network.
Additionally if the SGR will be completed as planned, it will reduce cargo transit time between Mombasa and Kampala from five days to under 24 hours. Also, it will cut transport costs by up to 30%, according to regional logistics analysts.
Similarly, Uganda is also developing the standard gauge railway network on its side following the recent launch of the construction of Kampala-Tororo SGR.
Reported on August 13, 2025
Kenya has laid plans to raise as much as $4 billion by securitizing an import levy to fund the extension of a China-built railway.These funds will be utilized in Naivasha-Kisumu-Malaba SGR Extension. Currently, Kenya is in talks with Etihad Rail to run freight operations on the railway line.
The East African nation will utilize its the railway development levy to raise funds to construct a section to the southwestern Kenyan city of Kisumu and Malaba on the Ugandan border. This was revealed by the Transport Cabinet Secretary Davis Chirchir. Furthermore, The Treasury collects approximately $387 million annually from the tariff that is usually charged at a rate of 2% of the value of imports into Kenya. This was also revealed by the minister.
Also read: Kenya’s SGR Extension Seeks UAE Partnership
Naivasha-Kisumu-Malaba SGR Extension Project Factsheet
Cost: approximately $4 billion.
Etihad Rail’s role: The partnership with Etihad Rail is focused on the operational aspect of the railway. Kenya is reportedly in talks with Etihad Rail for a concession agreement where the UAE’s national railway operator would:
- Invest in rolling stock: This includes acquiring locomotives and wagons for freight services.
- Operate freight services: Etihad Rail would be responsible for the day-to-day operations of the freight services on the extended SGR line.
- Commercial viability: According to Kenya’s Transport Secretary, Etihad Rail aims to handle a freight volume of about 17 million metric tonnes annually to make the concession commercially viable.
Kenya’s government’s role: under the proposed model, the Kenyan government, through the Kenya Railways Corporation (KRC), would maintain ownership of the railway infrastructure and handle engineering and maintenance.
Current status: feasibility, environmental and social impact studies for the extension have been completed. Preliminary activities, such as land surveying and resettlement plans, are underway.
Construction start date: the government is actively seeking financing, with construction potentially starting by the end of 2025.
Significance: The partnership with Etihad Rail and the extension of the SGR are viewed as critical for improving regional trade, enhancing connectivity, and boosting economic growth in East Africa. It marks a shift in Kenya’s strategy to involve private operators in the SGR’s commercial activities.
Kenya’s SGR Completion Date
The $5 billion SGR was completed in 2019. The railway links the port of Mombasa to Naivasha through Nairobi. Additionally, the railway infrastructure stands as Kenya’s largest infrastructure project since independence.
As outlined in the expansion plan, Kenya Railways Corp will be responsibile for engineering and maintenance. On the other hand, private operators will run services.
Kenya’s government plans to extend the network into South Sudan, Ethiopia, and the Democratic Republic of the Congo. This extension will make freight operations more commercially viable.
Etihad Rail Criteria for Justifying Investment
Etihad Rail requires freight volumes of at least 17 million tons annually to justify an investment. Currently, they are exploring options which include transporting about 3 million tons of crude oil each year from Kenya’s northern oilfields.
Also read: China Back as Kenya-Uganda SGR Financier
