Kenya's Naivasha–Malaba SGR extension budgeted at KSh 651bn; China's CCCC picked to build it

Kenya's National Treasury has put the cost of extending the Standard Gauge Railway (SGR) from Naivasha to Malaba at KSh 651 billion, up KSh 148 billion, or nearly a third, from an estimate of KSh 502.9 billion published a year earlier, according to an October 2026 Treasury report cited by Business Daily on 22 October 2026.

The extension has two parts. Phase 2-B runs about 264 kilometres from Naivasha to Kisumu, including an 8.69-kilometre branch line to the proposed Kisumu Port. Phase 2-C covers 107 kilometres from Kisumu to Malaba on the border with Uganda.

China Communications Construction Company (CCCC) and its subsidiary China Road and Bridge Corporation (CRBC) have been selected to build the line.

Business Daily said KSh 618.8 billion of the total is expected to come from external financiers. The government has said it will raise up to KSh 390 billion through securitised bonds backed by future Railway Development Levy collections.

President William Ruto broke ground on the Naivasha–Kisumu–Malaba line at Narok on 19 March 2026, Capital FM reported. Kenya Railways said on 1 July 2026 that construction works had commenced in Narok County. Business Daily reported on 22 October, citing Kenya Railways Corporation, that civil works on the extension from Naivasha had yet to start, pending land acquisition. The Treasury document says the environmental and social impact assessment and the resettlement action plan studies are complete.

The National Land Commission has identified more than 5,000 acres for acquisition in seven counties: Nakuru, Narok, Bomet, Kericho, Nyamira, Homa Bay and Kisumu. Kenya Railways Corporation has said it would acquire more than 5,000 acres.

Roads and Transport Cabinet Secretary Davis Chirchir said earlier, as quoted by Business Daily: "We have a framework where we are seeking to commercialise aspects of the project that are profitable."