Kenya is set to restart construction on a 369‑kilometre extension of its Standard Gauge Railway (SGR) using up to $4 billion in alternative financing, deliberately avoiding new loans from China, according to reporting by Business Insider Africa. The stalled project, which had been halted since 2019, is a critical component of Kenya’s efforts to enhance domestic transport and strengthen regional trade links.
Transport Secretary Davis Chirchir told lawmakers that the government plans to securitise a railway levy, a tax applied to imports, to raise the $4 billion needed to complete the rail line from Suswa to Kisumu and onward to Malaba on the Uganda border, Business Insider Africa reported. This approach allows Kenya to avoid accumulating additional foreign debt while ensuring the project moves forward.
The stalled segment, which halted midway from Nairobi, had previously depended on Chinese financing, highlighting the risks of over-reliance on foreign loans for large infrastructure projects. Some Chinese contractors remain involved, but Nairobi is pursuing greater fiscal autonomy and a more sustainable financing structure, Taipei Times reported.
Officials said completing the railway extension is key to improving access to the Port of Mombasa, supporting industrialization, and enhancing regional connectivity. The initiative reflects Kenya’s broader strategy to modernize infrastructure while reducing dependence on external creditors.
