Kisumu SGR budget increases to Sh650bn

The Treasury has revealed a Sh651 billion budget to extend the standard gauge railway (SGR) from Naivasha to Malaba, pointing to the high cost of financing the 369-kilometre modern rail.

This is a jump of nearly a third, or Sh148 billion, from an earlier estimate of Sh502.9 billion published a year ago for the development of SGR phases. Phase 2B and 2C, according to the October 2026 report by the Treasury. Although a large chunk of the financing—Sh618.8 billion—is expected to come from external financiers, it is not yet clear how the funds will be mobilised.