Gov't announces Ksh.25B compensation plan for Naivasha-Kisumu-Malaba SGR project

Brian Kimani
By Brian Kimani October 09, 2026 11:20 (EAT)
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Gov't announces Ksh.25B compensation plan for Naivasha-Kisumu-Malaba SGR project

Kenya Railways Corporation Managing Director Philip Mainga visits the Narok-Bomet-Kisumu of the Naivasha-Kisumu- Malaba Standard Gauge Railway on October 9, 2026. Photo/PCS

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The government has set aside Ksh.25 billion to compensate landowners affected by the construction of the Narok-Bomet-Kisumu section of the Naivasha-Kisumu-Malaba Standard Gauge Railway (SGR) project.

Kenya Railways Corporation Managing Director Philip Mainga said the National Land Commission (NLC) is conducting public participation ahead of the compensation process.

Mainga said Kenya Railways had also secured early access to some sections of land as negotiations and valuation with affected landowners continue.

He added that the affected communities had expressed willingness to participate in the process and work with the government to ensure smooth compensation negotiations.

Speaking during a public participation session, Stephen Ruto, a resident of Kapkesosio village, said the community welcomed the project, noting that it would connect Bomet County to the rest of Kenya, the East African region and beyond.

Construction of Phase 2B of the SGR project is picking up pace, with work having started early in some areas, including Narok.

The railway will cover approximately 98 kilometres in Narok County, while the wider route will pass through Bomet, Nyamira, Kericho, Homa Bay and Kisumu counties.

Mainga said the project was being developed as an SGR economic belt, with logistics hubs and value-addition facilities planned along the corridor to support local industries.

In Narok, the focus will be on agriculture, livestock and tourism, while Bomet and Kericho are expected to host logistics hubs targeting the tea industry.

Kisumu is also expected to have a logistics hub for fish, supporting storage and transportation to other markets.

The railway is expected to facilitate the transportation of locally produced goods, including tea, coffee and sugar, to the Port of Mombasa for export.

The government stated that the project will also create jobs and support small businesses as part of its Bottom-Up Economic Transformation Agenda.

President William Ruto launched construction of the railway on March 19, 2026, with the project expected to take approximately two years to complete.

The Narok station is expected to be partially complete by June 2027.

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