Kenya is close to securing funding for the extension of the Standard Gauge Railway (SGR) to Malaba, with construction expected to begin in September, Transport Cabinet Secretary Davis Chirchir has confirmed.

The announcement comes as Uganda revealed it has already begun work on its section of the SGR line, which will connect with Kenya’s railway at Malaba, further strengthening the Northern Corridor rail network.

The development also includes the Democratic Republic of Congo, which has pledged to join the regional project.

Uganda Railway Corporation Managing Director Benon Kajuna said the country had already paid its 15 per cent contribution for the project to the contractor.

He added that the initial construction phase had already started.

“We expect to complete the funding process by December but the project has partially begun,” Kajuna told regional ministers attending the 37th meeting of the Northern Corridor Transit and Transport Coordination Authority (NCTTCA) Council of Ministers held in Nairobi.

In Kenya, Chirchir said compensation for people affected by the project is underway along the corridor that will pass through Narok, Bomet, Nyamira, Kisumu and Busia counties.

He also confirmed that feasibility studies and Environmental and Social Impact Assessments have been completed, with the government pushing to develop the line in tandem with Uganda.

The SGR extension from Naivasha to Kisumu (Phase 2B) and from Kisumu to Malaba (Phase 2C) covers a distance of 475 kilometres and is projected to cost about $5 billion (Sh645.7 billion).

“We are currently doing the compensation of the people on the corridor. We are basically working together on a very synchronised manner. If we unlock funding today, we could be breaking ground in the next few months ahead of our colleagues but not so much to say we are competing, we must be synced,” Chirchir said.

Uganda is constructing an electric SGR line linking Kampala to Malaba, with a plan to extend it to the Rwandan border. Meanwhile, the DRC has committed to establishing its own SGR network, creating a continuous rail link from the Port of Mombasa into the central African region to enhance trade and mobility.

Kenya is actively pursuing investors to fund the project, focusing particularly on China, which financed the original Mombasa–Nairobi line completed in 2017 at a cost of Sh327 billion. The line was later extended to Suswa at an additional cost of Sh150 billion.

“We have a framework where we are seeking to basically commercialise aspects which are profitable. We want to build the rail and get investors to do the rolling stock and concession the freight,” Chirchir said, noting the government's aim is to avoid putting additional pressure on taxpayers by partnering with strategic investors.

The expanded SGR network is expected to complement other transport infrastructure along the 1,700-kilometre Northern Corridor that connects Kenya to Uganda, Rwanda, Burundi, and Eastern DRC.

It remains the preferred route for transit cargo compared to the 1,300-kilometre Central Corridor, which passes through Tanzania and also serves Rwanda, Burundi, Uganda and eastern DRC through the Port of Dar es Salaam.

To support railway development, Treasury Cabinet Secretary John Mbadi has proposed a Sh38 billion allocation for railway infrastructure in the 2025–26 financial year.

At the meeting, ministers directed the NCTTCA Secretariat to accelerate the rollout of the Northern Corridor Green Freight Strategy 2030, a plan aimed at reducing the environmental impact of freight operations and promoting sustainable infrastructure.

Executive Secretary John Deng said the Secretariat is also focusing on developing logistics hubs and cargo consolidation centres to promote trade.

Additionally, it is strengthening the capacity of agencies in member states to identify and develop Public Private Partnership projects and promote Special Economic Zones to help transform the Northern Corridor into a key economic development zone.