State allocates Sh4.8 billion for SGR local control, Malaba extension
The allocation includes Sh2.31 billion for establishing an overhaul workshop, Sh2.2 billion for the purchase of locomotive wheelsets, and an additional Sh300 million to upgrade the passenger ticketing system.
The government has earmarked Sh4.8 billion to facilitate the transition of the standard gauge railway (SGR) to full local control and extend its reach to Malaba.
The allocation includes Sh2.31 billion for establishing an overhaul workshop, Sh2.2 billion for the purchase of locomotive wheelsets, and an additional Sh300 million to upgrade the passenger ticketing system.
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The investment is part of the broader plan to ensure Kenya Railways Corporation (KRC) can effectively manage the SGR operations, taking over from the Chinese firm Afristar by December.
Budget documents tabled in the National Assembly show that the overhaul workshop will play a key role in maintaining and refurbishing locomotives, carriages and other train components. The facility is essential to keeping the railway running smoothly as the government plans to extend the SGR to the border town of Malaba through Kisumu.
“Kenya Railways intends to introduce commercial and logistics hubs in both the metre gauge railway and the standard gauge railway,” KRC said in a statement in March, highlighting the role of the overhaul workshop and logistics facilities in improving efficiency and boosting trade.
The Sh2.2 billion set aside for locomotive wheelsets will go toward acquiring vital components that serve as the interface between trains and rail infrastructure. Wheelsets carry the full weight of rolling stock, ensuring safe, stable and efficient movement of trains.
The Sh300 million allocation to overhaul the passenger ticketing system marks a shift from the current system, which has been managed by Afristar since 2017. The Chinese firm has overseen cargo operations, ticketing and fare collection for eight years, but the government is now seeking full autonomy over the railway’s operations.
The transition comes amid growing concern over the high cost of running the SGR. According to past Treasury disclosures, taxpayers spend at least Sh18 billion annually to fund operations and pay Afristar.
The full takeover is part of a cost-cutting strategy aimed at containing these expenses and empowering Kenyan personnel to operate and maintain the railway.
KRC had already assumed control of 90 per cent of the SGR operations by July 2023. The full transfer was initially expected to be completed by June 2024, but has since been pushed to the end of 2025.
The SGR is also set for a major extension from Naivasha to Kisumu and eventually to Malaba. The Naivasha-Kisumu section is projected to cost Sh380 billion, while the Kisumu-Malaba leg will require a further Sh122.9 billion.
The expansion is expected to improve cargo movement between Mombasa and Uganda, strengthening regional trade and connectivity.
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