By Erestinah Jane | July 1, 2026
The government’s planned extension of the Standard Gauge Railway (SGR) is expected to create more than 100,000 direct jobs while transforming Kenya into a major regional transport and logistics hub linking the Port of Mombasa to neighbouring East African countries.
The ambitious railway expansion forms part of Kenya’s long-term strategy to strengthen regional trade by developing one of Africa’s largest heavy-freight and high-capacity passenger rail corridors.
As preparations for construction gather pace, the government has intensified land acquisition and compensation processes along the proposed route to ensure affected communities are compensated before major works commence.
The Kenya Railways Corporation, working jointly with the National Land Commission (NLC), has deployed specialized land valuation and compensation teams to assess properties earmarked for compulsory acquisition.
According to the government, more than 3,500 landowners will be compensated for properties affected by the railway corridor.
In Kisumu County, officials have already completed site verification, land mapping and property assessments around the strategically important Kibos Terminus, one of the major operational hubs planned for the expanded railway network.
The compensation exercise is intended to facilitate smooth project implementation while ensuring affected residents receive payment in accordance with constitutional and legal requirements governing compulsory land acquisition.
Beyond compensation, the railway project is expected to deliver significant economic benefits during both the construction and operational phases.
The government estimates that construction alone will generate over 100,000 direct employment opportunities for Kenyan youth across various sectors, including engineering, construction, transport, surveying, environmental management and project supervision.
Thousands of additional indirect jobs are also expected to be created through increased demand for construction materials, transport services, hospitality, equipment supply and other support industries.
Local manufacturers are anticipated to benefit substantially from procurement opportunities as contractors source cement, steel, ballast, aggregates and other construction materials from Kenyan suppliers.
Small and medium-sized enterprises are also expected to secure contracts in logistics, catering, accommodation, security, equipment leasing and maintenance services throughout the construction
