Inside Nairobi Railway City: The Sh30 billion plan to redevelop the capital’s rail hub

Nairobi Railway City is the government's plan to transform the railway land around the Central Business District into a mixed-use urban district.

Kenya Railways presented fresh details at a stakeholder validation workshop on October 19, 2026, outlining six development zones designed to bring public transport, housing, offices, retail and leisure spaces together.

The redevelopment covers approximately 438 acres of land around Nairobi Central Station, including railway yards, workshops and other railway-related properties.

It forms part of a wider strategy to expand Nairobi's CBD while making better use of land already owned or controlled by Kenya Railways.

Rather than relocate the railway, the plan places it at the center of the development.

Six zones, one connected city

The master plan divides Railway City into six precincts:

Central Station Front, Central Station Back, Market Core, West Core, the Meetings, Incentives, Conferences and Exhibitions (MICE) Core, and Affordable Sustainable Housing.

The Central Station Front will contain the main transport interchange, linked to the Standard Gauge Railway, Meter Gauge Railway, Bus Rapid Transit and pedestrian and cycling routes.

The adjacent commercial zone is intended for offices, retail, logistics and mixed-use buildings.

The MICE precinct is planned around conference facilities, hotels and public spaces, while the West Core is expected to accommodate education, student housing, innovation and cultural activities.

Affordable and sustainable housing has been allocated approximately 112 acres, the largest single share of the land under the plan.

A separate proposal also includes a 15,000-seat indoor arena and entertainment district.

In April 2026, President William Ruto witnessed a lease agreement between Kenya Railways and Zaria Group for the arena development, which the government described as an anchor project for Railway City.

A bigger role for Central Station

The transport component is the centrepiece of the redevelopment.

Government planning documents envisage a modern multimodal station with nine platforms, improved passenger access and connections between rail and other public transport.

The station is being planned around projected passenger demand of 400,000 people daily by 2030 and 600,000 by 2045.

Those figures are projections rather than current passenger numbers.

They reflect the growth expected in Nairobi's commuter transport system and the need for a central interchange capable of handling larger flows.

The plans also include public spaces and improved pedestrian movement.

The intention is to reduce the separation between rail services, buses and other city transport, while encouraging more walking and cycling around the station.

The Sh30 billion factor

The redevelopment has been described in recent reporting as a project worth approximately Sh30 billion.

The UK government has separately valued Railway City at up to £150 million, approximately Sh26 billion at the conversion used in its 2025 announcement.

The financing arrangements require careful reading.

The UK has committed £2 million in technical assistance to help structure, phase and manage delivery.

Its government has also said Kenya was considering potential financing through UK Export Finance, but the final financing package for all components has not been publicly itemised.

Consequently, the full Sh30 billion should not be described as a confirmed British grant.

The project's delivery model involves Kenyan government institutions, private-sector participation and ongoing work to structure finance for its phases.

The UK government has projected up to 10,000 direct and indirect jobs from Railway City.

The employment would potentially come from construction, commercial property, hospitality, housing, transport and related businesses.

The project could also create new opportunities for businesses around the station and increase activity in parts of the CBD that currently sit alongside heavily used transport infrastructure.

But the results will depend on how the plan is implemented.

The project involves public land, existing railway operations, commercial development and housing, all of which require careful sequencing and coordination.

The project remains a phased redevelopment rather than a single construction contract covering every part of the 438 acres.

The first phase focuses on Central Station and the surrounding public realm, while private developers are expected to participate in selected precincts.

Kenya Railways' October 19 stakeholder workshop was a planning and validation milestone; it should not be read as confirmation that all construction has begun or that every component has secured final funding.

The redevelopment's success will depend on delivering the transport hub, connecting it to other services and ensuring that the surrounding housing and commercial development follows a clear plan.