List of Kenyan Cities Expected to Rise Economically Due to the SGR Expansion Plan

• President William Ruto’s administration plans to extend the Standard Gauge Railway (SGR) to Kisumu and Malaba
• The government explained why it chose the southern route over the northern route, noting that it would save taxpayers billions of shillings.
• The proposed SGR Phase 2B project will cross five counties, creating a transportation corridor that has the potential to completely transform businesses.

As a result of the technical assessment study and the predicted cost savings of $772.7 million (KSh 99.7 billion), the President’s administration William Ruto you have chosen the southern corridor railway for the extension of the Standard Gauge Railway (SGR) to Kisumu, leaving the alternative via Nakuru or Eldoret.

The approved plan favors the Nairobi-Naivasha-Poisonous-Malaba, which will pass through the counties of Narok, Bomet, Kericho, Nyamira and Kisumu.

Why did the Ruto government abandon the Nakuru/Eldoret route?

According to Daily Nationplanners cited engineering feasibility, cost effectiveness, economic feasibility, and long-term regional development considerations as key factors in their decision to reject Nairobi-Nakuru (northern route) and Nairobi-Nakuru-Kisumu-Malaba (central route).

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“Three broad routes were evaluated in terms of engineering feasibility, environmental, cost impacts, social considerations, and compatibility strategies with national development strategies,” the study said.

According to the information in the Environmental and Social Impact Assessment study, the southern route has significant financial implications in terms of economic centers, engineering geology, and investment needs, although its operating costs are comparable to those of the central route.

The route requires a minimal investment of about $772.7 million and only passes through 133 km of seismically active areas, which is 80 km below the Rift Valley fault areas in the northern alternative route.

Its drawback is that, despite connecting important cities like Narok and Kisumu, its economic centers are slightly smaller than those along the central route.

Which Kenyan cities will benefit from the SGR expansion plan?

As the government strives to build the 263.7 km SGR from Naivasha to Kisumu and create commercial centers and facilities along the route, several quiet rural towns in the Rift Valley and western Kenya are expected to experience economic growth.

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Under the management of the Kenya Railways Corporation (KRC), the proposed SGR Phase 2B project will cross five counties, creating a transport corridor that has the potential to transform trade, industrial activity, and urban growth.

Starting from the Nairobi-Naivasha SGR station, the route will pass through the towns of Narok, BometSotik, Kericho, Sondu, and Ahero before being completed in Kisumu city. It will then be extended to Malaba.

“When completed, it will reduce the bottlenecks caused by the existing transport system,” the plan added.

Why did Kenya get new terms for China’s SGR loans?

To reduce the large quarterly payments, Kenya extended the three Chinese loans used to build the first phase of the SGR to 2040.

The Treasury revealed that it had discussed the updated terms.

The deal, which is estimated to save the country about $215 million (KSh 27.7 billion) a year, included the conversion of three dollar loans into yuan.

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Source: TUKO.co.ke