Government Allocates KSh25 Billion for SGR Land Compensation

The Kenyan government has earmarked KSh25 billion to compensate landowners whose property will be affected by the Standard Gauge Railway extension from Naivasha through Narok, Bomet and Kisumu towards Malaba.

Kenya Railways Corporation Managing Director Philip Mainga said the National Land Commission is carrying out public participation ahead of compensation talks, and that the commission has allowed Kenya Railways early entry onto certain parcels while valuations continue.

The allocation was announced in a statement posted on the government’s official X account on Friday, October 9, 2026, placing land compensation at the centre of a multibillion-shilling railway project aimed at boosting agricultural trade, regional commerce and job creation.

Mainga described the scheme as an “SGR Economic Belt”, with planned logistics hubs and value-addition facilities along the corridor to link producers to larger markets.

The line is slated to traverse Narok, Bomet, Nyamira, Kericho, Homa Bay and Kisumu counties, connecting key agricultural zones to transport and export infrastructure.

In Narok the focus will be on agriculture, livestock and tourism; Bomet and Kericho are expected to host logistics centres serving the tea sector; and Kisumu is planned to house a fish-handling hub for storage and distribution.

The railway is intended to move locally produced commodities such as tea, coffee and sugar to the Port of Mombasa for export, although actual benefits will hinge on transport costs, the availability of storage and processing facilities, and business access to the new infrastructure.

Speaking at a public participation session in Narok, Mzee Stephen Ruto of Kapkesosio village said the community welcomed the project because it would link Bomet County to the rest of Kenya, the East African region and beyond.

The government added that affected landowners have shown willingness to engage in the consultation process and to cooperate on smooth compensation negotiations.

President William Ruto launched construction of SGR Phase 2B on March 19, 2026, and the programme is expected to last about two years, with the Narok station projected to be partially completed by June 2027.

Approximately 98 kilometres of the railway will pass through Narok County, and the extension is promoted under the Bottom-Up Economic Transformation Agenda to generate employment and support small businesses.

Success will be measured by whether the KSh25 billion compensation process safeguards landowners while allowing construction to proceed, and by the extent to which the promised economic hubs deliver tangible opportunities for communities along the route.