Kenyan government to spend $731m on new trains, SGR revamp

The government of Kenya has stepped up expenditure on the Nairobi-Mombasa standard gauge railway (SGR) with a plan to hit Ksh100 billion ($731.53 million) in the next three years to revamp the line, build new sidings and buy more locomotives and cargo wagons.

A report by Kenya’s National Treasury shows that the country’s Transport ministry will receive an additional Ksh97.7 billion ($714.7 million) for the “Development of Standard Gauge Railway” between July this year and June 2026.

This reverses a trend where the previous government had cut allocations to the SGR and will push the spending related to this line beyond KSh780 billion ($5.7 billion) by June 2026.

Beginning July, the Kenyan government has allocated Ksh37.4 billion ($275.79 million) from the Railway Development Levy Fund (RDLF) for the Nairobi-Mombasa SGR.

The bulk of the allocation, according to the breakdown shared with the Business Daily from transport, has been earmarked for the acquisition of additional locomotives and freight wagons at a cost of Ksh11.9 billion ($87.1 million).