Kenya eyes September for SGR extension to Malaba, Uganda and DRC onboard

A Kenya Railways SGR cargo train. (Photo: Kenya Railways)

By Maureen Kinyanjui
Saturday, July 12, 2025

Uganda Railway Corporation Managing Director Benon Kajuna said the government had already made its 15 per cent contribution to the contractor and that initial construction works had begun.

Kenya is preparing to begin construction of the Standard Gauge Railway (SGR) extension to Malaba in September, with discussions on financing now at an advanced stage, according to Roads and Transport Cabinet Secretary, Davis Chirchir.

The move comes as Uganda confirmed it has launched construction of its own SGR section, which will be joined with Kenya’s line at Malaba to allow smooth rail transport to the Democratic Republic of Congo (DRC) and other countries along the Northern Corridor. DRC has also announced it will join the project, opening up the entire region to a continuous rail network from the Port of Mombasa into Central Africa.

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Uganda Railway Corporation Managing Director Benon Kajuna said the government had already made its 15 per cent contribution to the contractor and that initial construction works had begun.

“We expect to complete the funding process by December, but the project has partially begun,” Kajuna said during the 37th Council of Ministers meeting of the Northern Corridor Transit and Transport Coordination Authority held in Nairobi.

Chirchir confirmed that Kenya has already started compensating people along the route, which will pass through Narok, Bomet, Nyamira, Kisumu and Busia counties. He said Kenya is fully committed to developing the SGR in step with Uganda.

The planned 475-kilometre stretch covers Phase 2B from Naivasha to Kisumu and Phase 2C from Kisumu to Malaba. The entire project is expected to cost around $5 billion (Sh645.7 billion).

“We are currently doing the compensation of the people in the corridor. We are working together in a very synchronised manner. If we unlock funding today, we could be breaking ground in the next few months ahead of our colleagues, but not so much to say we are competing, we must be synced,” Chirchir said.

Uganda is developing an electric SGR line connecting Kampala to Malaba, with future plans to link it to Rwanda. DRC is also planning its line to link with Uganda’s network, aiming to create a seamless railway system across the region.

Kenya is seeking strategic investors for the project, with China remaining a key focus, having previously financed the Mombasa–Nairobi SGR line completed in 2017 at Sh327 billion. The line was later extended to Suswa at an additional cost of Sh150 billion.

“We have a framework where we are seeking to basically commercialise aspects which are profitable. We want to build the rail and get investors to do the rolling stock and concession the freight,” Chirchir said, adding that the government does not intend to add pressure on taxpayers.

The SGR is part of wider efforts to upgrade the 1,700-kilometre Northern Corridor, which connects Mombasa to Uganda, Rwanda, Burundi and Eastern DRC. It is preferred by traders over the 1,300-kilometre Central Corridor, which runs through Tanzania, as the route through Kenya is seen as faster and more reliable.

Kenya’s Treasury Cabinet Secretary John Mbadi has proposed an allocation of Sh38 billion for railway expansion in the 2025–26 budget to support the project.

At the same meeting, ministers directed the NCTTCA Secretariat to speed up the implementation of the Northern Corridor Green Freight Strategy 2030. The plan aims to reduce the negative environmental effects of freight transport while building climate-resilient infrastructure.

According to Executive Secretary John Deng, the Secretariat is also focusing on setting up logistics hubs and cargo centres to ease regional trade. It is also supporting the identification and development of Public Private Partnership projects and the promotion of Special Economic Zones to turn the corridor into a key driver of economic growth.