Kenya Railways Breaks Ground on Construction of Naivasha-Kisumu-Malaba SGR
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Kenya Railways Breaks Ground on Construction of Naivasha-Kisumu-Malaba SGR

Kenya Railways Corporation (KRC) has commenced the physical construction of the Naivasha-Kisumu-Malaba Standard Gauge Railway (SGR), with a groundbreaking in Narok County officially starting a rail network that aims to seamlessly connect the port of Mombasa to the Ugandan border.

The event on Wednesday, July 1, 2026, was witnessed by Kenya Railways Managing Director Philip Mainga, Narok County Commissioner Kipkech Lotiatia, Narok County Secretary Mayan Tuya and National Government officials.

The engineering blueprint divides the massive extension into highly strategic corridors implemented in two phases. The primary, Phase 2B Naivasha-Kisumu line will span 264 kilometers, starting from Emurtoto in Narok County. This section will feature a critical 8.69-kilometer branch line terminating directly at the newly upgraded Kisumu Port on Lake Victoria, integrating rail and maritime freight capabilities.

From the lakeside city, the subsequent Phase 2C Kisumu-Malaba section will cover an additional 107 kilometers, effectively anchoring Kenya’s rail network directly to the Ugandan border.

The entire corridor traverses nine counties, that is Narok, Bomet, Nyamira, Kericho, Kisumu, Siaya, Vihiga, Kakamega, and Busia.

To facilitate passenger and freight movement, the design incorporates six major intermediate stations situated in Narok, Mulot, Bomet, Sotik, Sondu, and Ahero, traversing 17 complex crossing sections.

Kenya Railways Managing Director Philip Mainga has set an aggressive completion target for the Naivasha-Kisumu segment, projecting operational readiness by June 2027.

Before construction commenced, Kenya Railways and the National Land Commission held public engagement forums with Project Affected Persons (PAPs) to explain land acquisition procedures, compensation processes and the legal framework governing the project.

The consultations were aimed at promoting transparency and preparing affected communities for implementation.

The government has described the SGR extension as a strategic investment that will deepen economic integration within the East African Community by facilitating faster movement of goods between Kenya, Uganda and other neighbouring countries.

"This railway will enhance trade with East African countries and strengthen Kenya's position as the region's logistics hub." Kenya Railways said.

The economic case for the extension rests on the current inefficiency of road-based transport along the Northern Corridor. Thousands of trucks currently ply the Nairobi-Kisumu highway daily, contributing to severe road damage, frequent accidents, and high transportation costs.

A recent study by the East African Business Council found that transporters pay $1.80 per kilometre on every container of cargo along the Northern Corridor, nearly twice the international average, while countries along the route spend approximately $2,160 per kilometre annually on road repairs.

The SGR extension is expected to reduce freight costs by at least 40% per tonne per kilometre and cut transit times by nearly 30%, with a significant share of cargo shifting from road to rail.

The new line will feature passenger trains running at 120 km/h and freight trains at 80 km/h with the line accommodating freight trains of up to 4,000 tonnes.

Uganda is simultaneously advancing its own SGR from Malaba to Kampala, a 272-kilometre line that will complete the cross-border connection.

The SGR projects operate within the broader context of the Northern Corridor, the critical transport artery connecting landlocked East and Central African countries to the Port of Mombasa.

This 1,700-kilometre corridor serves Kenya, Uganda, Rwanda, Burundi, Democratic Republic of Congo, and South Sudan, handling over 85% of East African Community trade.

The construction of the Kenyan rail is being handled Chinese firms China Communications Construction Company (CCCC) and China Road and Bridge Corporation (CRBC) alongside a partnership with Kenya's pension scheme, NSSF. The project is budgeted at KES 700 billion.

2 hrs ago3 mins read

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MP Nyoro Now Kenya Airways 2nd Largest Individual Shareholder
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MP Nyoro Now Kenya Airways 2nd Largest Individual Shareholder

As the National Treasury scrambles to find new investors to rescue Kenya Airways after the airline reported a net loss of Ksh17.1 billion in the year ended December 2025, recent regulatory filings show that two members of parliament have quietly built stakes in the struggling national carrier.

Kiharu Member of Parliament (MP) Ndindi Nyoro has emerged as the second-largest individual shareholder in Kenya Airways (KQ) after purchasing 10,396,251 shares currently valued at Ksh 49.2 million based on the counter’s Tuesday price of Ksh 4.74.

Thika Town MP Alice Ng’ang’a picked up 2,334,623 shares worth KES11 million, placing her among the airline’s top 20 individual shareholders.

Ndindi Nyoro, a former stockbroker, is well known for his NSE activity. He is the top individual investor in Kenya Power with a 1.3 percent stake, 24.1 million shares valued at KES226.7 million — built at an average entry price of KES1.80 per share. The stock now trades at KES9.38, handing him one of the most publicised retail returns on the Nairobi bourse in recent years.

His success appears to be drawing others. Alice Ng’ang’a acquired 13.6 million shares in Kenya Re last year, ranking among that reinsurer’s top ten individual shareholders. Kenya Re’s share price has edged down to KES3.13 from KES3.19 six months ago when her position was first disclosed, though the company’s decision to pay a dividend of KES0.15 per share — despite an 11.5 percent drop in net profit to KES3.9 billion for the year to December 2025 — gives her some near-term return.

Alice Ng’ang’a has previously described her investment philosophy as focused on companies with solid fundamentals, steady returns, and long-term value creation.

The convergence of political figures and well-connected corporates on the Kenya Airways’ share register ahead of a major capital raise is worth watching. Whether these positions reflect genuine conviction in a turnaround story or an attempt to be well-positioned when the strategic investor deal reshapes the company’s structure is a question the market will be asking.

Kenya Airways investor deal in the background

The timing is deliberate. The Treasury, Kenya Airways’ top shareholder, is actively trying to bring in a strategic investor to inject up to KES258 billion in fresh capital. In a recent shift, Kenya Airways’ management indicated it is now considering a consortium of investors rather than a single strategic partner, a change in approach that signals the complexity of the deal. The finer details of the proposed transaction have not yet been made public.

The MPs are not the only new names on Kenya Airways’ shareholder register. Suods Logistics has become the airline’s fourth-largest shareholder with a 0.37 percent stake valued at KES103.4 million. Danmill Enterprises sits sixth with a 0.26 percent stake, while Primelane Properties holds a 0.15 percent stake. Both Danmill and Primelane are registered under Peter Kamau Mwangi, giving him a combined 0.41 percent stake worth KES112.4 million.

Statutory disclosures show this isn’t Mwangi’s first move in listed companies. Danmill Enterprises is among the top shareholders in HF Group and Kenya Power, while Primelane Properties holds a position in KenGen. Suods Logistics is also a significant owner in both HF Group and KenGen, and last year acquired a stake in the State-owned Development Bank of Kenya from the insolvent investment firm TransCentury.

Financial Results

Kenya Airways (KQ) reported a net loss of KES17.1 billion for the year ended December 2025, reversing a KES5.4 billion profit the year prior as revenues fell sharply. Accumulated losses have pushed the airline’s asset position to negative KES132 billion.

The national carrier’s full-year results, released on March 24, 2026, mark a sharp reversal from the modest profitability achieved in 2024 and underscore persistent operational and financial headwinds in African aviation.

Total revenue fell to $1.25 billion (KSh 161.5 billion) from $1.46 billion (KSh 188.5 billion) the prior year, a 14 per cent contraction. Management attributed the drop primarily to an 18 per cent reduction in available seat capacity after several aircraft, including Dreamliners, were grounded for maintenance and technical issues.

Passenger numbers and cargo volumes both declined, with no offsetting yield gains reported. Operating costs eased only modestly to $1.29 billion (KSh 167.1 billion), insufficient to prevent an operating loss of $43.2 million (KSh 5.6 billion), swinging from an operating profit of roughly $128 million (KSh 16.6 billion) in 2024.

Net finance expenses of $95.1 million (KSh 12.3 billion), largely forex-related and interest on legacy debt turned the operating shortfall into a pre-tax loss of approximately $138.3 million (KSh 17.9 billion). After a modest tax credit, the group posted a net loss after tax of $132.7 million (KSh 17.2 billion), erasing the $41.7 million (KSh 5.4 billion) profit recorded in 2024 and pushing the net margin from +2.9 percent to –10.6 percent.

Kenya Airways has recorded net losses in 13 of the past 16 years. Major deficits include $279 million (KSh 36.2 billion) in 2020, $296 million (KSh 38.3 billion) in 2022 and $175 million (KSh 22.7 billion) in 2023. Cumulative losses since 2010 now surpass $1.54 billion (KSh 200 billion). The brief profits in 2010–2012 and 2024 appear as outliers rather than the start of a sustainable turnaround.

Apr 2, 20265 mins read