Kenya plans to spend Ksh 38 billion to expand railway transport and its infrastructure. This was revealed by John Mbadi Ng’ongo, the cabinet secretary for the National Treasury and Economic Planning, in the 2025/26 budget statement.
Ng’ongo also proposed an allocation of Ksh 450 million for the Kenya Ferry Ramp in Mombasa, Ksh 331.2 million for the Nairobi Bus Rapid Transport Project, and Ksh 298.7 million for the Promotion of E-Mobility Project.
To facilitate the movement of goods and people in Kenya’s inland waters, Ng’ongo proposed an additional Ksh 110.4 million for the acquisition of ferries for Lake Victoria.
He said the government will continue to invest in transportation networks, including roads, railways and air travel to reduce travel time and logistics costs, making markets more accessible and facilitating the movement of goods and people.
Ng’ongo further proposed an allocation of Ksh 217.3 billion for the development of roads. This includes: Ksh 30.9 billion to support the construction of roads and bridges; Ksh 70.8 billion for the rehabilitation of roads; and Ksh 115.6 billion for road maintenance.
The theme for this year’s budget is “Stimulating Sustainable Economic Recovery for Improved Livelihoods, Job Creation and Business and Industrial Prosperity” - in line with the Kenyan government's bottom-up economic transformation agenda.
Ng’ongo disclosed that the government continues to strengthen the role of Public-Private Partnerships (PPPs) in financing its development agenda.
Currently, there are 32 PPP projects at various stages, which are targeted to mobilise Ksh 70 billion in the 2025/26 finance through private investments in priority sectors including energy, water, housing, health and transport.
Kenya Railways 2023-2027 Strategic Plan aims to provide a strategic direction for the rail transport sector to upscale the sector’s contribution to national growth and economic development.
This plan has six Key Results Areas (KRAs) and seven strategic objectives that will be implemented over the plan period. It captures the activities Kenya Railways expect to carry out in an effort to make Kenya Railways responsive to the needs of its customers and measure up to the expected standards of a dynamic public transport sector.
The key areas of focus for Kenya Railways in the coming five years include investment in new railway infrastructure, including locomotives and rolling stock, revitalisation of operations of the existing Meter Gauge Railway line and development of human capacity to support the execution of the Kenya Railways mandate.
Written for Railways Africa by Chamwe Kaira
