Kenya is intensifying its diplomatic and economic engagement with China as part of a broader strategy to revitalize the Standard Gauge Railway (SGR) and unlock new trade and investment opportunities along its corridor.

This renewed commitment was highlighted during a high-level Joint Technical Team (JTT) meeting held on Saturday, August 2, 2025.

The Kenyan delegation, led by Foreign Affairs Principal Secretary Korir Sing’Oei, included senior government officials from national and county governments, as well as key players from the private sector.

In a statement released by PS Sing’Oei, the discussions focused on positioning the SGR as a key pillar in Kenya’s economic transformation and regional integration.

The delegation explored how to leverage the railway line to attract investment, boost local manufacturing, and create sustainable employment across counties along the route.

“The meeting, held aboard the SGR train from Nairobi to Naivasha, brought together senior officials from the Chinese Embassy, Kenyan ministries, county governments, and business leaders to evaluate how the railway can better serve its purpose as a driver of development,” Sing’Oei said.

Key topics included the establishment of Special Economic Zones (SEZs), agro-processing clusters, and infrastructure-led industrialization projects along the SGR belt. The aim is to enhance value addition, reduce logistical bottlenecks, and foster cross-border trade.

Participants also toured the Vertical Agro Export Processing Zone (EPZ) facility a major player in Kenya’s horticulture export sector as a model of the potential value chains that could thrive if anchored to efficient rail transport. The company processes and exports fresh and frozen produce to several global markets, including China.

However, the meeting also addressed existing challenges that have hindered full utilization of the SGR. Concerns were raised over the high cost of energy, lack of preferential market access, and bureaucratic inefficiencies that discourage private sector uptake.

Among those present were Chinese Ambassador Guo Haiyan; Trade PS Regina Ombam; Nakuru Governor Susan Kihika; Deputy Governors Tamalinye Koeach (Narok) and Martin Moshisho (Kajiado); Kenya Railways Managing Director Phillip Mainga; KenInvest CEO John Mwendwa; China-Africa Development Fund representative Zhang Yadan; and Yu Xiaodong, Chair of the Kenya-China Business Community.

The renewed technical collaboration comes in the wake of President William Ruto’s successful state visit to China, during which he secured a new financing framework to extend the SGR from Nakuru to Kisumu.

The long-awaited deal signals a breakthrough for the Lake Region, with Phase 2B of the railway expected to eventually reach Malaba, linking Kenya to Uganda and enhancing regional trade flows across East Africa.

The Kenya-China partnership around SGR reflects Nairobi’s broader ambition to reposition the railway as a modern infrastructure backbone capable of supporting industrial growth, easing logistics, and cementing its role in the Belt and Road framework.