Govt Announces Ksh 25B Compensation for Kenyans Affected by Naivasha-Malaba SGR Extension

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

According to a statement dated Friday, October 9, Kenya Railways Corporation Managing Director Philip Mainga said the National Land Commission (NLC) is conducting public participation ahead of the compensation process for people whose land will be affected by the railway project.

“The government has set aside Ksh 25 billion to compensate people affected by the construction of the Narok-Bomet-Kisumu of the Naivasha-Kisumu- Malaba Standard Gauge Railway project,” read part of the statement.

Landowners Agree to Engage Government Over SGR Compensation

Philip added that the NLC had granted Kenya Railways early access to some sections of land as negotiations and valuation with affected landowners continue.

This is after affected landowners expressed willingness to participate in the process and work with the government to ensure smooth compensation negotiations.

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The early access granted to Kenya Railways on some sections of land is expected to allow construction activities to progress as valuation and negotiations continue with landowners.

According to Kenya Railways, the railway will cover approximately 98 kilometres in Narok County, with the wider route passing through Bomet, Nyamira, Kericho, Homa Bay and Kisumu counties.

Speaking during a public participation session, Mzee Stephen Ruto of Kapkesosio village welcomed the project, saying it would connect Bomet County to other parts of Kenya, the East African region and beyond.

Construction of Phase 2B is progressing after President William Ruto launched the railway project on March 19, 2026, with construction expected to take approximately two years.

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

New SGR Line to Strengthen Trade and Market Access

Furthermore, Mainga said the project is being developed as an SGR Economic Belt, with logistics hubs and value-addition facilities planned along the railway corridor to support economic activities in the counties it serves.

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

Also Read: Kenya Railways Addresses Compensation Concerns Over SGR Extension Displacements

Kisumu is also expected to host a logistics hub focused on fish, providing storage facilities and supporting the transportation of fish to other markets.

The planned facilities are intended to strengthen links between producers, traders and markets while supporting the movement of goods across the country.

“As part of the government’s Bottom-Up Economic Transformation Agenda, the project is also expected to create jobs and support small businesses,”

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