Kisumu to Face Toll Charges on Final Phase of SGR Extension

A consortium of Chinese firms will finance and operate the last 40% of Kenya’s Standard Gauge Railway (SGR) extension, which runs from Naivasha to Malaba, passing through Kisumu. To recover their investment, these firms will impose toll charges for using this segment of the railway.

National Treasury Cabinet Secretary John Mbadi revealed this plan while addressing the Budget and Appropriations Committee. The financing structure involves 30% from external sources, 30% (about KSh 45 billion annually) funded by the Kenyan government, and the remaining 40% covered by the Chinese consortium through toll fees.

The 255-kilometer extension will pass through Narok, Bomet, Kericho, and Kisumu before reaching Malaba. Additionally, the project includes modifications to the Kisumu port, such as the construction of two multipurpose berths to accommodate larger cargo vessels, boosting regional trade.

Kenya and Uganda have expressed interest in extending the SGR further to connect with Rwanda and the Democratic Republic of Congo, strengthening its role as a key regional trade corridor. However, details regarding the toll charges, duration, and completion timeline are yet to be disclosed.