Sgr Extension Naivasha Kisumu Business Boom

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When Eunice Adhiambo heard that President William Ruto had launched the extension of the Standard Gauge Railway from Naivasha to Kisumu and onward to Malaba on the Ugandan border, she immediately began planning for a food business.

“I want to prepare all kinds of food — ugali, chapati, omena, fish, meat and chicken — to serve the workers who will be here every day,” the Kisumu resident said.

She is among thousands of Kenyans set to benefit from the transport project designed to transform the Rift Valley, Nyanza, and Western regions. The impacts of the SGR extension are expected to be felt throughout Kenya and East Africa through improved transport, job creation, and expanded trade opportunities.

Peter Otieno, a food wholesaler in Kisumu, said the influx of workers and improved transport will increase demand for goods. “Once construction starts, we expect more people in the city. That means higher demand for food, water, and basic supplies. For us traders, this is an opportunity to grow our businesses.”

He added that enhanced rail transport will also reduce the cost of moving goods from other parts of the country. “Transport has been expensive. If the SGR reaches Kisumu, it will be easier and cheaper to bring in goods in bulk. That will increase our profit margins,” he said.

“We are expecting more customers, especially during construction. Even after that, better transport will bring more visitors to Kisumu. This will boost business for hotels, restaurants, and entertainment venues,” said Mary Achieng, who runs a restaurant in the lakeside city.

John Mwangi, a hardware store owner, noted that the project would open up regional markets. “With the railway reaching Malaba, it will be easier to move goods to and from Uganda. That means more business opportunities not just for big companies, but also for small traders like us,” he said.

David Gitahi said many young people are waiting for construction jobs. “The construction will give most idle people around here an opportunity to work and earn a living. We have been told everyone will have a chance depending on their skills,” he said.

President William Ruto last week launched the construction of the extension of the SGR from Naivasha to Kisumu, and on Saturday was joined by Ugandan President Yoweri Museveni to inaugurate the Kisumu-Malaba stretch.

The proposed Phase 2B and 2C of the SGR will cover a total of 369km. Phase 2B passes through Narok, Bomet, Nyamira, Kericho, and terminates at Kisumu city, while Phase 2C will traverse Kisumu, Siaya, Vihiga, Kakamega, Bungoma, and Busia counties.

Project components include the construction of a modern SGR line, development of passenger and freight stations, construction of a new Kisumu port, railway bridges, culverts, drainage works, and the installation of signalling and telecommunications systems.

It is expected to be completed in the next 20 months. “This milestone marks a major step forward in infrastructure development, opening up new opportunities for growth, connectivity, and regional integration,” said Kisumu Governor Anyang’ Nyong’o ahead of the launch.

Safety. Speed. Comfort. That is what awaits travellers. But there is more — farmers, traders, and manufacturers will benefit from lower transport costs and efficient access to broader markets.

Towns along the route are anticipated to enjoy a business boom. Land values are expected to appreciate, and additional social amenities such as water, electricity, and feeder roads will enhance residents’ quality of life.

The Naivasha-Kisumu stretch will feature six intermediate stations in Narok, Mulot, Bomet, Sotik, Sondu, and Ahero, with an 8.69km branch line to the new Kisumu port. The line will include 17 crossing stations and three freight stations.

Kenya’s current railway infrastructure comprises 2,778km of metre gauge line. In 2006, the East African Community adopted the East Africa Railway Master Plan, which included SGR technology. Today, Kenya has 592km of SGR from Mombasa to Naivasha. Completion of the Naivasha-Kisumu-Malaba line will bring total SGR coverage to 961km.

Several other proposed SGR lines are at the feasibility stage, including Lamu–Isiolo (544.4km), Isiolo–Nakodok on the South Sudan border (753.2km), Isiolo–Nairobi (278.6km), Isiolo–Moyale (476km), and the Lamu–Mariakani SGR line (325.3km).

Kenya Railways Corporation managing director Philip Mainga stated that residents along the route will be the primary beneficiaries of the Naivasha-Kisumu-Malaba SGR project. “The construction materials used by the contractor will be mined along the route from various counties. Everything, including steel and cement, will be sourced locally,” he said.

“We will not import steel or cement. This will boost local businesses in these sectors,” Mainga added.

He noted that professionals such as drivers, construction machinery operators, and other workers will find employment opportunities.

Mainga said the project has strengthened Kenya’s ties with Uganda, as evidenced by the presence of President Museveni in Kisumu. The SGR line will facilitate connectivity to Uganda and improve trade and logistics across East Africa.

“In Narok, we have produce such as hens, hides and skins, livestock, and wheat. In Bomet, there is tea, milk, and timber. Kericho is known for tea. We plan to establish logistics centres in each county based on local production,” Mainga explained.

Local produce will be pooled at county logistics centres connected to the railway, enabling farmers to export their products more easily. Kenyan millers in sugar-producing regions will benefit from cheaper, more efficient transport to both local and regional markets.

“We will also have refrigerated wagons to move fish from Kisumu directly to markets in Nairobi, Mombasa, or even for export,” Mainga added.

Malaba, the final Western point of the SGR in Kenya, will feature a dry port for cargo destined for Uganda, the Democratic Republic of Congo, South Sudan, and Rwanda.

“We are creating buffer zones, connecting roads, and services such as water and electricity. We are developing a corridor where towns will grow,” Mainga said.

The Western SGR will significantly reduce travel times, ease congestion, and lower traffic accidents on highways. Railway travel is generally safe. “Having overseen this system for many years, I can say I have never lost a customer, except those already unwell,” Mainga said.

Western leaders have welcomed the extension of the SGR to Malaba in Busia.

Khwisero MP Christopher Aseka said the project will transform the region in terms of connectivity and ease of transport.

Aseka said the project would reduce congestion on the Northern Corridor and road accidents by shifting cargo transport to the railway.

“The railway will create jobs during construction and spur the rural economies in the region, especially where there are stations,” he said.

Kakamega Deputy Governor Ayub Savula said the project will boost trade between Kenya and Uganda.

“The extension of the railway and dualling of the Northern Corridor will, without a doubt, boost the economy, especially in Western Kenya,” he said.

Vihiga county government spokesman Frank Matika said the project will help revitalise the dormant Western tourism circuit.

“Western being an agricultural zone, the railway will ease movement of farm produce to the markets and do away with middlemen who have been fleecing them by buying their produce at throwaway prices and selling in Nairobi and other counties at abnormal profits,” he said.

Luanda MP Dick Maungu said the project will position Luanda town as a key trade hub in Western Kenya, allowing traders to move goods quickly and efficiently to Kisumu, Malaba, and beyond.

He said it will improve connectivity and lower transport costs and open new markets for farmers and small businesses.

“A station in Luanda means more employment, more business for traders, and more revenue for the county. The railway’s impact will touch nearly every sector of our local economy, from the open-air market to small-scale manufacturers and agribusinesses,” he said.

“Luanda is already home to a modern market and an industrial aggregation park, designed with a railway in mind. Having the SGR station here will ensure Luanda continues to grow, attract investment, and support the livelihoods of our people for generations to come,” he said.

The MP also highlighted the social benefits for residents, including easier access to education and healthcare. With a station in town, students and patients can travel faster and more safely to Kisumu or other regional towns.

“It is not just about business; it is also about making life easier for our people, getting goods, services, and opportunities closer to home,” he said.

Reported by Henry Makori in Nairobi, Faith Matete in Kisumu, and Hilton Otenyo in Kakamega.