TREASURY REVEALS SH651 BILLION COST OF SGR EXTENSION TO MALABA

The 369-kilometre railway project is expected to extend Kenya’s Standard Gauge Railway towards the Ugandan border, with expensive financing cited as a major cost driver.

NAIROBI, Kenya — The National Treasury has disclosed that extending Kenya’s Standard Gauge Railway (SGR) from Naivasha to Malaba will cost an estimated KSh651 billion, raising questions about the project’s financing, economic benefits and value for taxpayers’ money.

The proposed extension will cover approximately 369 kilometres, advancing Kenya’s ambition to connect its railway network to Uganda and strengthen regional transport links.

According to the Treasury, the high projected cost is largely attributed to expensive financing, highlighting the financial challenges associated with implementing major infrastructure projects.

The extension is expected to support the movement of passengers and cargo, improve regional trade and strengthen Kenya’s position as a transport and logistics hub in East Africa.

However, the KSh651 billion price tag is likely to intensify public debate over whether the anticipated economic benefits will justify the substantial investment.

Key questions include how the project will be financed, the expected repayment burden, the projected freight volumes and whether the railway will generate sufficient economic returns to support its long-term sustainability.

As Kenya pursues regional connectivity, transparency in project financing, effective cost management and clear accountability will be essential in demonstrating the value of the investment.

THE BIG QUESTION: Is the KSh651 billion SGR extension a worthwhile investment in Kenya’s economic future, or is the cost too high for taxpayers?

By LiveNation254 News Desk

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