The Kenyan government has awarded a Ksh700 billion contract to two Chinese infrastructure firms for the Standard Gauge Railway extension from Naivasha to Malaba. The project is expected to be completed by June next year. It will replace the century-old metre-gauge 'Lunatic Express' railway.
The Kenyan government has confirmed that China Communications Construction Company (CCCC) and China Road and Bridge Corporation (CRBC) have been awarded the contract for constructing the remaining sections of the Standard Gauge Railway from Naivasha to Kisumu and Malaba. These Beijing-based state-owned firms participate in China's Belt and Road Initiative across 150 countries.
CCCC Chairperson Song Hailiang, speaking at the groundbreaking on March 21, 2026, described the new financing as a key outcome of President William Ruto's diplomatic engagement with China. Part of the project will be funded through Public Private Partnerships (PPP) and taxpayer money.
Unlike previous phases reliant on loans from China's Export-Import Bank, this approach has been praised as more innovative. The administration renegotiated existing SGR loans, converting dollar-denominated debt to yuan and extending repayments to 2040.
The railway aims to reduce transport costs, improve cargo efficiency, and boost regional trade between Kenya, Uganda, and the Democratic Republic of Congo.