Treasury Earmarks Ksh3 Billion for New SGR Coaches and Equipment

The National Treasury has moved to address the increasing demand for rail services by allocating Ksh3.36 billion for the acquisition of new rolling stock for the Standard Gauge Railway (SGR). This funding is designated for the purchase of 20 modern passenger coaches and 500 flat wagons intended for freight operations

The allocation follows a period of sustained growth in passenger numbers, which hit 2.7 million in 2025 according to the latest Economic Survey. Kenya Railways has frequently reported full bookings for its premium and economy classes, particularly during peak holiday seasons.

Beyond the new carriages, a portion of the budget is earmarked for the purchase of SGR locomotive wheelsets. These components are essential for the maintenance and reliability of the existing fleet, ensuring that locomotives remain operational as the mileage on the initial stock continues to accumulate.

The investment comes as the government considers the long-term viability of the 1,144-kilometer rail network. Discussions are currently underway regarding the potential electrification of the line, alongside the construction of several Meter Gauge Railway (MGR) links to connect various counties to the main SGR corridor.

President Ruto has previously emphasized the need to expand the railway's reach to the western border. The current budgetary support aligns with the broader strategy to extend the line from Naivasha to Kisumu and Malaba, facilitating smoother regional trade across the East African Community.

The procurement of the 500 flat wagons is specifically aimed at boosting the capacity of the freight division. By increasing the number of available wagons, Kenya Railways expects to improve the efficiency of moving containers from the Port of Mombasa to the Inland Container Depots in Nairobi and Naivasha.

Standard Gauge Railway revenues have seen a significant uptick, reaching Ksh21.4 billion in the last financial year. This 18 percent increase from the previous year has provided the government with the confidence to reinvest in the system's infrastructure and rolling stock.

A version of this article appeared on Kenyans.co.ke. The Treasury's decision to provide these funds underscores the priority placed on the railway as a backbone of national logistics.

Maintenance of the existing fleet remains a high priority for the Ministry of Transport. As the SGR nears a decade of operation, the replacement of wheelsets and the overhaul of older coaches are becoming necessary to meet international safety and comfort standards for commuters.

The expansion of the passenger fleet by 20 coaches is expected to allow for more frequent daily trips between Nairobi and Mombasa. This will provide more options for travelers who have recently faced challenges securing seats on the popular inter-county and express services.