Kenya eyes SGR extension to Malaba border to boost regional trade and cut transport costs

Kenya is seeking funding for the extension of the Standard Gauge Railway (SGR) from Naivasha to the Malaba border, a strategic infrastructure project aimed at unlocking the economic potential of Western Kenya and streamlining regional trade.

The proposed extension will pass through Narok, Bomet, Kericho, Nyamira, and Kisumu, before reaching Malaba, positioning the rail corridor as a critical gateway for cargo and passenger transport between Kenya and its landlocked neighbors.

President William Ruto has reaffirmed the government’s commitment to securing the necessary financing, stating that completing the SGR to the border is vital to reducing transport costs and enhancing logistics efficiency.

“The SGR extension to Malaba will allow traders to transport cargo seamlessly from the Port of Mombasa to Uganda, Rwanda, South Sudan, DRC, and Burundi—boosting intra-African trade and reducing reliance on road transport,” President Ruto said.

China, a long-time infrastructure partner of Kenya, is expected to remain a key player in the project, having financed and built the first phase of the SGR. Chinese firms were also behind the construction of the Nairobi Expressway and several landmark buildings across the country.

The initial phase of the SGR—from Mombasa to Naivasha—was completed in October 2019. Since its launch, the Madaraka Express passenger service has transported over 10 million passengers between Nairobi and Mombasa. Meanwhile, cargo volumes on the SGR reached 6.4 million metric tonnes for the year ending June 2024, underlining its growing role in freight transport.

However, the Kenya Association of Manufacturers (KAM) notes that some businesses still prefer road transport due to its cost advantages and operational flexibility, despite the availability of the SGR.

Extending the railway to Malaba is expected to change that narrative, offering a more cost-effective and reliable alternative for bulk cargo, while strengthening Kenya’s status as a regional transport and logistics hub.

The government views the SGR expansion as a flagship project under its infrastructure development agenda and a major pillar in supporting the African Continental Free Trade Area (AfCFTA) goals.