Kenya plans to secure $4 billion by securitising its railway development levy to extend the Standard Gauge Railway (SGR) from Naivasha to Kisumu and Malaba, Transport Secretary Davis Chirchir announced.
According to Bloomberg, the levy—a 2% tariff on imports generating roughly 50 billion shillings ($387 million) annually—will fund the expansion of the $5 billion SGR, completed in 2019, which connects Mombasa to Naivasha via Nairobi.
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Under the plan, Kenya Railways will handle engineering and maintenance, while private operators run freight services.
Talks are ongoing with Etihad Rail, which is considering transporting up to 3 million tons of crude oil annually from Kenya’s northern oilfields, provided freight volumes reach at least 17 million tons.
The extension aims to improve commercial viability by linking South Sudan, Ethiopia, and the Democratic Republic of the Congo.
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In parallel, Kenya has revived its $2 billion Jomo Kenyatta International Airport (JKIA) expansion, seeking funding from lenders such as China Exim Bank, the African Development Bank, and the European Investment Bank.
Construction on a new terminal and runway upgrades could begin before year-end.
Additionally, a 175 billion shilling ($1.36 billion) securitised bond will be issued next month for road projects, with proceeds repaying $530 million in bridge financing already secured from TDB, KCB, and Absa
Image Credit: Bloomberg.com
