Kenya is in active talks with United Arab Emirates-based Etihad Rail to fund and operate the freight component of the Standard Gauge Railway (SGR) extension from Naivasha to Malaba. The proposed deal is part of a broader plan to reduce government spending on the Ksh 645 billion ($5 billion) railway project.
Roads and Transport Cabinet Secretary Davis Chirchir confirmed the discussions during the 37th Ministerial Meeting of the Northern Corridor Transit and Transport Coordination Authority (NCTTCA) held in Nairobi.
The government is seeking private partners to shoulder at least Ksh 130 billion of the project, mainly through freight concessions. This model would see investors provide and operate locomotives, passenger coaches, and freight wagons, allowing the state to focus solely on infrastructure development.
“We want to construct the rail infrastructure and let private investors handle the rolling stock,” Chirchir said. “Instead of allocating another $500 million or $1 billion for equipment, we’ll leave that to investors and concentrate on the work they can’t do.”
Etihad Rail has expressed interest in handling up to 17 million metric tonnes of freight annually on the proposed line. According to Chirchir, that cargo volume would allow the company to recover its investment and maintain operations profitably.
Feasibility studies and route mapping have been completed, and the government is currently compensating residents affected by the railway corridor.
Kenya also plans to align the construction timeline with Uganda’s SGR project. Uganda Railways Corporation Managing Director Benon Kajuma, who is also the outgoing chair of the NCTTCA, said Uganda aims to begin its 272-kilometer electric rail line from Malaba to Kampala at a cost of €2.7 billion (Ksh 405 billion). Future phases will extend the line to the borders with Rwanda, the Democratic Republic of Congo, and South Sudan.
“We’re rolling out construction in phases,” Kajuma said. “Once we reach Kampala, we’ll expand westward to link with neighboring countries.”
The East African Community, under the NCTTCA framework, is working to harmonize rail transport regulations, customs, and immigration systems. The regional plan targets a shift of at least 60% of the 40 million metric tonnes of cargo moving through the Port of Mombasa onto rail, up from the current 20%.
This push comes as Kenya and its neighbors seek to cut transport costs, reduce road congestion, and improve trade efficiency along the Northern Corridor, the region’s busiest trade route.
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