By Dorothy Musyoka
The Government has taken a significant step towards advancing the Naivasha–Kisumu Standard Gauge Railway (SGR) Phase 2B following the signing of an addendum to the project’s commercial contract.
According to Kenya Railway, the addendum was witnessed today by the Cabinet Secretary for Roads and Transport, Davis Chirchir and formally signed by the Managing Director of Kenya Railways Mr. Philip Mainga and Mr. Yu Xiao Dong representing China Communications Construction Company.
The revised agreement aligns with Cabinet approval to finance the project through alternative funding mechanisms, notably the securitization of a portion of the Railway Development Fund.
Speaking during the signing, CS Chirchir emphasized that the approach reflects the Government’s commitment to delivering critical transport infrastructure while maintaining fiscal discipline and sustainability.
The alternative financing model is expected to support improved project sequencing, accelerate implementation timelines and enhance oversight and accountability.
It also strengthens risk-sharing arrangements between the public sector and private partners, ensuring better value for money and long-term viability of the project.
Once completed, the Naivasha–Kisumu SGR Phase 2B will significantly enhance regional connectivity by extending the standard gauge network to Western Kenya.
The project is expected to lower transportation and logistics costs along the Western Corridor, facilitate trade, and strengthen economic integration within Kenya and across the region.
The Government reaffirmed its commitment to modern, efficient and sustainable transport systems as a cornerstone of national development, regional trade facilitation and inclusive economic growth.