Why it could take 12 years to complete Malaba SGR project

The construction of Narok-Malaba Standard Gauge Railways via Kisumu could take up to 12 years to complete if the government relies on the levies currently collected from the Railway Development Levy, Transport Cabinet Secretary Davis Chirchir has said.

In appearing to justify why the government needs to acquire more loans and also rope in the private sector through Public Private Partnerships, the CS said the government could not finance the project internally.

Chirchir made the remarks when he appeared before the Senate Committee on Roads, Transport, and Housing to discuss the amendments to Kenya Roads Board Act and the draft budget for the year 2026-27.

He was responding to an inquiry by the Committee chair, Eddy Oketch, who said that, of late, there have been national concerns about the project and how it is going to be funded.

Chirchir said while this was a crucial project not only for Kenya but the larger East Africa, levies collected from Kenya Railways will not be enough to fund the project which is estimated to be around 600 billion shillings.

The groundbreaking for the over 400-kilometre project was presided over by President Ruto on 19 March 2026.

“The government has undertaken to raise funds through innovative mechanisms. We have a railway development levy which levies 2 percent for all inbound goods into Kenya,” Chirchir told the Committee

From this, the CS said between Sh42billion and Sh45 billion is collected annually from the railways.

“If we were going to build the railway line through cash flow of Sh40 billion every year, and the corridor requires about 5 billion dollars, which works to close to Sh600 billion, we'd be building that railway line for 12 years before we complete.

To avoid this, the CS said the remaining option is to have a facility to be serviced by this levy, which like the road maintenance levy, is specific for the railway development.

“There was a protocol signed by the three countries, Uganda and South Sudan, that each country builds a portion of their country, and Uganda is busy building,” Chirchir told the Committee

Adding, “if we don't complete our portion, then Uganda's portion will not go to market. So we are leveraging on RBLF, and we are working with China Exim, with the China government, to see how to support the construction of this section, Naivasha, Narok-Kisumu, to Malaba,”

During the groundbreaking ceremony,  President Ruto said the SGR extension would enhance trade with East African countries.

"The SGR extension will position Kenya as the regional trade and logistics hub, linking Uganda, Rwanda, Burundi, South Sudan and the Democratic Republic of Congo to the Port of Mombasa while unlocking the economic potential of western Kenya," he said.

He projected that the SGR would reduce traffic congestion in the region and improve highway safety.

"It will ease road congestion by shifting bulk cargo to rail, cutting costs, saving time, and improving safety across our highways," Ruto said.