According to officials from the National Treasury, the funding will go toward purchasing new, state-of-the-art coaches designed to meet growing passenger demand, particularly along the busy Nairobi–Mombasa route.
The investment is also expected to support refurbishment works and technological upgrades that will improve service delivery and operational reliability.
The SGR, operated by the Kenya Railways Corporation, has been a critical component of Kenya’s transport infrastructure since its launch in 2017.
It has significantly reduced travel time between Nairobi and Mombasa while offering a safer and more predictable alternative to road transport.
However, rising passenger numbers and wear and tear on existing coaches have prompted the need for reinvestment.
Treasury officials noted that the new coaches will feature improved seating capacity, enhanced onboard amenities, and better accessibility for persons with disabilities.
The upgrades are also expected to include digital ticketing enhancements, improved scheduling systems, and maintenance upgrades to reduce service disruptions.
Transport stakeholders have welcomed the allocation, saying it reflects the government’s commitment to strengthening public transport infrastructure.
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Experts argue that improving the SGR experience could help shift more travelers from road to rail, easing congestion on major highways such as the Nairobi–Mombasa corridor and reducing accident rates.
“This is a timely investment,” said a transport analyst familiar with railway operations. “The SGR has already proven its value, but to remain competitive and sustainable, continuous upgrades are necessary.”
The funding announcement comes amid broader efforts by the administration of President William Ruto to revitalize key infrastructure projects and boost economic growth through improved connectivity.
The government has also been exploring ways to increase cargo uptake on the SGR to maximize returns on the multi-billion-shilling investment.
Critics, however, have raised concerns over the financial sustainability of the railway, pointing to its operational costs and debt obligations.
They argue that while upgrades are important, the government must also focus on improving revenue streams and efficiency in management.
Despite these concerns, the Treasury maintains that the new investment will strengthen the SGR’s long-term viability by attracting more passengers and improving customer satisfaction.
Implementation of the upgrades is expected to begin within the current financial year, with procurement processes already underway.
Once completed, the improvements are anticipated to further position the SGR as a backbone of Kenya’s modern transport network.
