Naivasha, Kenya — In a strategic pivot to boost infrastructure and stimulate private sector participation, the Kenyan government has invited private investors to supply and operate rolling stock for the upcoming Standard Gauge Railway (SGR) extension from Naivasha to Malaba, while accelerating land titling for Special Economic Zones (SEZs) at Naivasha.

 What’s the Big Move?

Transport Cabinet Secretary Davis Chirchir recently announced that Kenya will build the railway infrastructure — including tracks, terminals, signaling systems, and stations — while private partners will provide locomotives, passenger coaches, and freight wagons. These investors will recover their costs through passenger and cargo fees, while the state retains core rail assets. 

This marks a departure from the state-led funding model of Phases 1 and 2A. The whole Naivasha–Malaba stretch, spanning approximately 475 km, is estimated to cost Sh645.95 billion (about US $5 billion). The government hopes this public–private partnership will significantly reduce fiscal pressure. 

 Where It Counts: The Route

• Phase 2B: Naivasha to Kisumu (≈ 262 km) — passing Narok, Bomet, Kericho, Nyamira and Kisumu counties

• Phase 2C: Kisumu to Malaba (~107 km) — traversing Siaya, Vihiga, Kakamega and Busia counties

  Together, these sections form critical links tying Kenya’s coast to Uganda and beyond. 

Kenya has already begun land compensation, completed route mapping, and finalized key studies including feasibility and environmental-impact assessments, in coordination with Uganda. 

 Funding Framework

• A Chinese consortium is slated to finance 40% of the project (~US $2 billion), while China Exim Bank will provide 30%, and the Kenyan government will fund the remaining 30% — primarily through the railway development levy (RDL) or securitization strategies. 

• Treasury has proposed at least Sh16.5 billion in the 2025–26 budget to support the extension (Naivasha–Kisumu and Kisumu–Malaba segments). 

Construction is expected to begin by December 2025, aligning with regional partners like Uganda and the Democratic Republic of Congo. 

Naivasha SEZ: Clearing the Way for Regional Logistics

Complementing the rail expansion, Kenya is fast-tracking issuance of title deeds for plots in the Naivasha Special Economic Zone. Neighboring countries — including South Sudan (10 acres), Rwanda (9.8 acres), and Burundi — are being given parcels to develop logistics hubs, cargo yards and clearing facilities. These SEZs aim to anchor East African trade, with land titles seen as essential to attracting investment. 

Why It Matters

• Reduces public fiscal strain: The model shifts capital-intensive operations to private players — especially for rolling stock.

• Enhances regional integration: The expansion fills a missing link on the Northern Corridor, enabling trade from Mombasa to Uganda, Rwanda and DRC.

• Unlocks foreign logistics investment: Formalized land titles pave the way for regional agencies to establish hub operations.

Kenya’s invitation to private-sector engagement in the SGR extension and the formalization of regional logistics landholdings mark ambitious steps toward cementing the country’s role as a continental transport and trade hub. Mature execution could not only reshape East African logistics—but deliver a long-awaited return on national infrastructure investment.