Government unveils Sh25 Billion compensation plan for landowners along SGR extension line

The Kenyan government has set aside KSh25 billion to compensate landowners affected by the construction of the Naivasha–Kisumu–Malaba Standard Gauge Railway (SGR) Phase 2B project.

The major infrastructure undertaking, covering the Narok–Bomet–Kisumu stretch, marks a significant step forward in extending the country’s high-speed rail network toward Western Kenya and the wider East African region.

Speaking during a public participation session in Narok, Kenya Railways Corporation Managing Director Philip Mainga announced that the National Land Commission (NLC) is actively coordinating community engagements to ensure a seamless valuation and compensation process.

According to Mainga, the NLC has already granted Kenya Railways early access to specific sections of the corridor to keep construction momentum going while negotiations with landowners proceed.

"The government has set aside KSh25 billion to compensate people affected by the construction of the Narok-Bomet-Kisumu section," Mainga stated, emphasizing that public consultations are designed to safeguard the rights of local residents while preventing delays to the project timeline.

Affected landowners have expressed support for the process, signaling a willingness to collaborate with state agencies to clear the way for construction.

"The community welcomes the project," said Mzee Stephen Ruto, a resident of Kapkesosio village who attended the public participation session. "It will connect Bomet County to the rest of the country, the East African region, and beyond."

The SGR Phase 2B project forms part of a broader vision to build an "SGR Economic Belt" designed to stimulate regional economies, create employment opportunities, and enhance trade logistics under the Bottom-Up Economic Transformation Agenda (BETA).

In Narok County alone, the rail corridor will stretch across approximately 98 kilometers, with the overall line traversing six counties: Narok, Bomet, Nyamira, Kericho, Homa Bay, and Kisumu.

To maximize the economic output of each region along the route, the government plans to establish specialized logistics hubs and value-addition facilities tailored to local produce:

Narok County: Focus will center on supporting agriculture, livestock production, and tourism.

Bomet and Kericho Counties: Facilities will feature dedicated logistics hubs optimized for tea processing, storage, and transport.

Kisumu County: A specialized fish logistics hub will support cold storage and streamline the movement of fresh fish to domestic and export markets.

Beyond regional trade, the extended railway line is expected to provide key export sectors including tea, coffee, and sugar with direct, high-capacity access to the Port of Mombasa.

Construction on Phase 2B officially commenced following a launch by President William Ruto on March 19, 2026.

The full project is scheduled for completion within approximately two years.

Work in Narok has already gathered momentum, with early construction phases moving rapidly.

According to Kenya Railways, the Narok station is projected to reach partial completion by June next year, marking one of the earliest major milestones of the extension project.