Kenya Sets Aside KSh25bn to Compensate Landowners as SGR Phase 2B Advances
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Kenya Railways says a KSh25 billion compensation programme is being prepared for landowners along the Naivasha-Kisumu-Malaba Standard Gauge Railway, with the National Land Commission running public participation as Phase 2B construction gathers pace.
Kenya has set aside KSh25 billion to compensate landowners along the Naivasha-Kisumu-Malaba Standard Gauge Railway (SGR) corridor, as construction of Phase 2B of the project gathers pace.
Kenya Railways Corporation Managing Director Philip Mainga said the National Land Commission (NLC) is conducting public participation ahead of the compensation process, and that the corporation had secured early access to some sections of land as negotiations and valuation with affected landowners continue. He added that 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.
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 is 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 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, and the government says 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 19 March 2026, with the project expected to take approximately two years to complete. The Narok station is expected to be partially complete by June 2027.