Following recent meetings between Treasury Cabinet Secretary John Mbadi and Chinese Ambassador to Kenya Guo Haiyan-along with Mbadi's subsequent trip to China-it has emerged that the government will proceed with the stalled extension of the Standard Gauge Railway (SGR), with funding secured from the Asian country. According to official sources, following the engagements that began in January, a consortium of Chinese companies will provide 40 per cent of the funding for the 475km (295-mile) railway line from Naivasha to the border town of Malaba. China will provide funding to the tune of Ksh706.9 billion (US$5.3 billion) to finance the project, with the government expected to seek the rest of the funding through other means. Meanwhile, the government will provide 30 per cent funding for the project from the railways development levy or securitisation of the levy, according to Mbadi.
Treasury Cabinet Secretary John Mbadi with the Chinese Ambassador to Kenya, Guo Haiyan, after signing the grant agreement on March 27, 2025.
Photo Treasury Further, it has emerged that the Chinese will adopt a model similar to the one used on the Expressway-operating the railway and charging toll fees for several years to recover their investment, according to the Treasury.
For the Nairobi Expressway, China's Belt and Road Initiative (CRBC) will operate it for 30 years to recover its investment before transferring ownership to the Kenyan government.
