The government has set aside billions of shillings to upgrade Kenya’s Standard Gauge Railway (SGR), in a move aimed at improving passenger comfort and boosting cargo capacity.
In the 2026/27 budget, the Treasury allocated funds to Kenya Railways for the purchase of new passenger coaches and freight wagons. The plan includes 20 modern passenger coaches and 500 flat wagons to support both travel and cargo movement along the SGR line.
The funding is part of a broader investment in the transport sector, which received Ksh51.78 billion in the new budget. It also comes as the government pushes ahead with the planned extension of the railway from Naivasha to Kisumu and Malaba.
To enhance its performance even more, the government has earmarked another Ksh2.76 billion to acquire new locomotive wheelsets that will help cut down malfunctions and ensure dependable service delivery. Coupled with the purchase of new coaches, total expenditure required for the above mentioned projects is estimated at approximately Ksh3.36 billion.
In addition to this, the government will allocate another Ksh450 million to introduce a modernized passenger reservation system that would facilitate easier booking.
These investments came after numerous complaints made by travelers who pointed out poor conditions of trains, mainly coaches in economy class. To counter such complains, Kenya Railways is already implementing a project to introduce new coaches that will offer comfortable and quality ride.
Besides this, negotiations with Yapı Merkezi have been launched to initiate an ambitious project to electrify SGR between Mombasa and Malaba. Should it be launched, such a project will allow for smooth movement of cargo and people both within the country and across East Africa.
Also, the electric railway has much to do with another large-scale railway project initiated in Uganda which is expected to strengthen regional trade once completed.