Government awards Ksh700 billion SGR tender to two Chinese firms

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.

Awọn iroyin ti o ni ibatan

Construction of the Standard Gauge Railway (SGR) extension phases 2B and 2C, from Naivasha through Kisumu to Malaba, is set to begin in March 2026. Kisumu Governor Anyang' Nyong'o confirmed this after a consultative meeting with local leaders and national government officials. The meeting focused on land acquisition and compensation for affected residents.

Ti AI ṣe iroyin

Following last month's announcement of construction starting in March, the National Land Commission (NLC) has detailed fair compensation plans for over 3,500 landowners affected by the Naivasha-Kisumu-Malaba Standard Gauge Railway (SGR) phases 2B and 2C. NLC CEO Kabale Tache Arero highlighted the economic empowerment benefits, with public forums engaging stakeholders.

The Kenya Urban Roads Authority (Kura) has announced plans to rehabilitate the key State House Road at a cost of Ksh1.6 billion. This road links Nairobi's central business district to the presidential residence and government offices. The project forms part of a larger initiative covering 92 roads with a total budget of Ksh15.6 billion.

Ti AI ṣe iroyin

Kenya's Cabinet has approved a Ksh5 trillion National Infrastructure Fund to accelerate economic growth. Alongside a new Sovereign Wealth Fund, it will employ creative financing like public asset sales and national savings to support priority projects. The decision follows President Ruto's pledge to realize the fund soon.

 

 

 

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