Construction of the Ksh700 billion (~$5.46bn) Naivasha–Kisumu–Malaba Standard Gauge Railway officially commenced on 1 July 2026 in Narok County and 2 July 2026 in Kisumu County — the first physical groundbreaking on a section of Kenya’s SGR that had been stalled for more than six years due to funding constraints. The contract was awarded to China Communications Construction Company (CCCC) and China Road and Bridge Corporation (CRBC). Phase 2B covers 264km from Naivasha (Emurtoto) to Kisumu including an 8.69km branch line to Kisumu Port; Phase 2C covers the Kisumu–Malaba section connecting Kenya’s network to the Uganda border.
Project Details
Key Issues / Risks
Financing is the central uncertainty — Kenya has outlined plans to securitise an import levy to raise up to $4bn, with roughly Ksh232 billion ($1.8bn) required from external financiers for Phase 2B alone. A Court of Appeal ruling in 2026 directed the government to release documents on the original Phase 1 SGR financing, adding political transparency pressure. As of August 2026 Kenya Railways reports the construction 'appears delayed' with pre-acquisition boundary surveys and land marking still underway — no major civil works yet despite the July commencement announcement.
Latest Development (Detail)
Construction officially commenced 1–2 July 2026. As of early August 2026 (three weeks after commencement), Kenya Railways confirmed that visible construction progress is limited as teams are still doing pre-acquisition surveys and land boundary marking — but describe these as normal early-stage activities. The project is expected to handle up to 22 million tonnes of cargo annually at full operation and carry freight from Mombasa Port to the Uganda border.
What Happens Next
Financial close on external financing (Ksh232bn from external sources still being arranged); commencement of major civil earthworks (currently in land acquisition and survey phase as of August 2026).
Commercial Opportunity
One of the most significant freight-corridor construction programmes in East Africa this decade. Opportunities in civil works, rail systems, land and environmental consultancy, camp services, and local supply.