The government has set aside KSh25 billion to compensate landowners whose property will be affected by the extension of the Standard Gauge Railway (SGR) from Naivasha to Kisumu and Malaba.
Kenya Railways Corporation Managing Director Philip Mainga said the National Land Commission (NLC) was conducting public participation ahead of compensation negotiations with affected landowners.
Mainga made the announcement during an inspection of the ongoing railway construction works in Narok on Thursday, October 8, 2026.
He said the government had also allowed Kenya Railways early access to some sections of land as valuation and compensation discussions continued.
“We have registered a lot of people for the project. We have set a budget aside. We have given them about KSh25 billion. We will go to compensation. We will go to compensate the project-affected persons,” Mainga said.
The allocation covers people affected by Phase 2B of the railway project, which will pass through Narok, Bomet, Kericho, Nyamira and Kisumu before the wider railway network extends towards Malaba on the Ugandan border.
The NLC is overseeing the land acquisition process, including engagement with affected communities and valuation of the property required for construction.
In February 2026, the commission said more than 5,000 acres of land would be required for the Naivasha-Kisumu section, with Kisumu expected to account for a significant share of the affected parcels.
Speaking during a public participation meeting in Narok, Mzee Stephen Ruto of Kapkesosio village welcomed the project, saying it would connect Bomet County to other parts of Kenya and the wider East African region.
The government says the railway extension is expected to improve the movement of goods, create jobs and support trade along the corridor.
Mainga said Kenya Railways was developing the project as an economic belt, with logistics hubs planned to support agricultural products such as tea, coffee, livestock and fish.
The planned facilities are expected to link producers in western Kenya and the Rift Valley to wider markets, including the Port of Mombasa.
The railway project was launched by President William Ruto on March 19, 2026, as the government moved to extend the existing SGR line beyond Naivasha.
The Naivasha-Kisumu section is expected to connect with the proposed Kisumu-Malaba extension, strengthening railway links between Kenya and Uganda.
Mainga said construction was progressing in Narok and other sections of the route, with the government targeting the completion of major parts of the project by June 2027.
The compensation process remains a key step in the construction, with affected landowners awaiting valuation and negotiations before payments are finalised.
The government has said it will work with the NLC and affected communities to facilitate land acquisition as construction continues.