Kenya Accelerates SGR Expansion: $4 Billion Financing Plan Targets Naivasha–Kisumu–Malaba Link

Kenya is taking a bold step to strengthen its national transport infrastructure with plans to extend the Standard Gauge Railway (SGR) from Naivasha to Kisumu and Malaba, bringing rail service closer to the Ugandan border. The government is preparing to raise approximately $4 billion to fund the project, largely through securitising an import levy, demonstrating a creative approach to mobilizing domestic resources for large-scale infrastructure. According to Business Insider Africa and Finance Middle East, the extension is part of Kenya’s broader strategy to “close the loop” on its SGR network, enhancing connectivity between inland industrial centers and ports on the Indian Ocean. By linking Naivasha, a hub for horticulture and manufacturing, to Kisumu and Malaba, the railway is expected to facilitate cross-border trade, reduce logistical bottlenecks, and support economic growth in the western region of the country.

Construction of the new segment is planned to begin in January 2026, with the government emphasizing its importance in integrating Kenya’s rail network with regional freight corridors. The SGR has already transformed transport between Nairobi and Mombasa by reducing travel time, increasing freight capacity, and lowering costs for businesses. Extending the line westwards will replicate these benefits in areas that historically depended on road transport, which is slower, less reliable, and more vulnerable to congestion and road accidents. The new link will not only serve freight traffic but is also expected to enhance passenger mobility, connecting communities along the corridor and fostering regional development. Analysts highlight that the project aligns with the African Union’s vision for a continental railway network, linking landlocked countries like Uganda to international markets efficiently.

Beyond the immediate economic and logistical benefits, the SGR extension is expected to generate significant social and developmental impacts. The construction phase will create thousands of jobs and stimulate local businesses supplying materials and services. Improved connectivity is likely to boost trade in agricultural products, manufacturing outputs, and industrial goods from western Kenya, benefiting both producers and consumers. Moreover, the extension strengthens Kenya’s role as a regional transport hub within the East African Community (EAC), providing Uganda and neighboring countries with a reliable alternative route to Mombasa Port. By leveraging innovative financing mechanisms and strategic planning, the Naivasha–Kisumu–Malaba SGR extension exemplifies Kenya’s commitment to modernizing transport infrastructure, promoting regional integration, and laying the foundation for sustainable economic growth.