The Kenyan government is actively pursuing a freight concession deal with the United Arab Emirates’ state-owned Etihad Rail to fund the extension of the Standard Gauge Railway (SGR) from Naivasha to Malaba. Roads and Transport Cabinet Secretary Davis Chirchir revealed that the government is adopting a public-private partnership model to ease the financial burden on the exchequer and accelerate completion of the critical infrastructure project.
Speaking during the 37th Ministerial Meeting of the Northern Corridor Transit and Transport Coordination Authority (NCTTCA) in Nairobi, Chirchir said the freight concession would allow private investors to fund and manage rolling stock engines, freight wagons, and passenger carriages while the government focuses on rail infrastructure.
“We are seeking freight concession the way we build roads. We want to build the rail and get investors to do the rolling stock. That way, instead of spending an extra $500 million or $1 billion, we leave that to the private sector,” said Chirchir.
Etihad Rail has expressed interest in the project, particularly in handling up to 17 million metric tonnes of cargo annually, which they estimate would allow them to break even. Chirchir confirmed that feasibility studies and route mapping have been completed, and land compensation for project-affected persons is currently underway.
The SGR extension is set to synchronize with Uganda’s Standard Gauge Railway project. Uganda Railways Corporation Managing Director Benon Kajuma, who is also the outgoing NCTTCA chairperson, said Uganda is preparing to begin the €2.7 billion (Ksh 405 billion) construction of its electric SGR line from Malaba to Kampala, a 270km stretch. The broader plan includes extending the line to the borders of the Democratic Republic of Congo, Rwanda, and South Sudan in subsequent phases.
The NCTTCA member states, under the East African Community (EAC), aim to harmonize transport regulations, customs, and immigration processes. The goal is to shift at least 60% of the 40 million metric tonnes of cargo moving through the Port of Mombasa to rail transport up from the current 20% as part of a broader strategy to boost regional integration and reduce logistics costs.
