Faced with an unprecedented surge in transit cargo through the Mombasa Port, the Kenyan government has unveiled a robust strategy to expand the country’s rail infrastructure.

The 2026/27 budget proposal places a heavy premium on transport and logistics, recognizing that the current road network is insufficient to handle the growing freight volumes.

As the Port of Mombasa continues to solidify its position as a regional logistics hub, the pressure on transit corridors has necessitated a multimillion-shilling investment in the railway sector to prevent bottlenecks and ensure the seamless movement of goods.

To address this logistical necessity, the Treasury has allocated a staggering KSh51.78 billion to the transport sector in the financial year 2026/27. Significantly, Ksh40.25 billion, nearly 78% of the transport allocation, has been specifically earmarked for the development and rehabilitation of both the Standard Gauge Railway (SGR) and the Meter Gauge Railway (MGR).

This financial commitment underscores the government's recognition that rail is the only viable, long-term solution to decongesting the Northern Corridor and reducing the cost of doing business.

The cornerstone of this expansion is the continued development of the SGR Phase 2B and 2C. The Treasury has allocated Ksh20.84 billion for these projects, which cover approximately 369 kilometres connecting Naivasha to Kisumu and onwards to Malaba.

These extensions are critical for unlocking the hinterlands. By linking the Port of Mombasa directly to the western region and neighboring land-linked countries, the government aims to siphon a significant portion of the heavy cargo currently clogging the highways.

Construction is already progressing, with recent groundbreakings signaling the urgency of completing these routes to accommodate freight traffic.

However, expanding the main line is only part of the solution. To ensure that cargo moves efficiently from the port to the rail head, the government has directed Ksh1.39 billion toward the Mombasa–Miritini link.

This rehabilitation of the MGR is a vital feeder project designed to smooth the transition of cargo from ships to trains, addressing the "first mile" connectivity issues that often plague port operations.

Furthermore, to support the increased freight volume, the budget prioritizes the acquisition of vital rolling stock and maintenance equipment. A sum of Ksh616 million has been set aside for the procurement of 500 SGR flat wagons and 20 passenger coaches, while Ksh2.76 billion will go towards acquiring locomotive wheelsets.

Additionally, Ksh822 million is allocated for the supply and commissioning of Kenya Railways rolling stock. These assets are essential for boosting the hauling capacity of the railway network, ensuring that the infrastructure can physically handle the rise in transit tonnage.

Operational efficiency is also a key focus, with Ksh450 million allocated for the installation of a modern SGR passenger ticketing system and Ksh2.39 billion for the construction of an SGR overhaul workshop. The workshop is particularly crucial for the rail network's sustainability, as it will localize maintenance, reduce downtime, and lower the operational costs associated with sending equipment abroad for repairs.

The rehabilitation of the MGR network complements the SGR expansion by reviving branch lines that serve agricultural and industrial areas.

The Longonot-Malaba line Phase II has received Ksh796 million, while strategic allocations have been made for the Nairobi-Nanyuki, Kisumu-Butere, Lesuru-Kitale, and Gilgil-Nyahururu routes. These investments aim to restore the viability of older rail infrastructure to capture cargo from regions not directly served by the SGR.

Moreover, the government is investing Ksh1.4 billion in the Voi–Taveta transshipment facility and Ksh500 million for a logistics hub in Athi River. These facilities act as critical nodes in the supply chain, facilitating the transfer and storage of goods, further alleviating pressure on the port.