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Govt Announces KSh25 Billion Compensation Fund for SGR-Affected Landowners

Mary WanjohibyMary Wanjohi
October 9, 2026
Reading Time: 5 mins read
Govt Announces Ksh25 Billion Compensation Fund For Sgr-Affected Landowners

President Ruto during the groundbreaking ceremony for the Naivasha–Kisumu section of the SGR in Narok County. PHOTO- William Ruto.

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The government has set aside KSh25 billion to compensate landowners affected by the construction of the Naivasha-Kisumu-Malaba Standard Gauge Railway (SGR), with the National Land Commission conducting public participation ahead of the compensation process.

In a statement on October 9, the government said Kenya Railways Corporation Managing Director Philip Mainga had confirmed that the commission was engaging affected landowners as negotiations and valuation of the land continued.

“Kenya Railways Corporation Managing Director Philip Mainga said the National Land Commission is conducting public participation ahead of the compensation of affected landowners,” read part of the statement.

Mainga said the National Land Commission had also granted Kenya Railways early access to some sections of land to facilitate construction as compensation negotiations continued.

The affected landowners have expressed willingness to participate in the public participation process and work with the government to ensure smooth compensation negotiations.

Speaking during a public participation session, Mzee Stephen Ruto of Kapkesosio village welcomed the railway project, saying it would connect Bomet County to the rest of Kenya, the East African region and beyond.


Also Read: Govt Reveals List of Kisumu Residents to Mandatorily Surrender Land for SGR Expansion

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SGR Extension to Pass Through Six Counties

Construction of SGR Phase 2B is picking up pace, with Narok among the areas where work started early.

The railway will cover approximately 98 kilometres in Narok County, with the wider route passing through Bomet, Nyamira, Kericho, Homa Bay and Kisumu counties.

Mainga said the project was being developed as an SGR Economic Belt, with logistics hubs and value-addition facilities planned along the corridor to support local industries and trade.

In Narok, the focus will be on agriculture, livestock and tourism, while Bomet and Kericho are expected to have logistics hubs targeting the tea sector.

Kisumu is also expected to host a logistics hub for fish, supporting storage and the transportation of fish to other markets.

The railway is expected to facilitate the movement of locally produced goods, including tea, coffee and sugar, to the Port of Mombasa for export.

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As part of the government’s Bottom-Up Economic Transformation Agenda, the project is also expected to create jobs and support small businesses along the railway corridor.

President William Ruto launched construction of the railway on March 19, 2026, and the project is expected to take about two years to complete. The Narok station is expected to be partially complete by June 2027.

NLC Begins Land Acquisition Process

The compensation announcement follows an earlier notice by the National Land Commission expressing its intention to compulsorily acquire land for the construction of SGR Phase 2B and 2C, linking Naivasha, Kisumu and Malaba.

In a gazette notice dated April 3, the Commission announced its intention to acquire land on behalf of Kenya Railways Corporation under Section 110 of the Land Act.


Also Read: Details of Naivasha–Kisumu–Malaba SGR Train Stations, Route and Passenger Capacity


 

“Notice is given that the National Land Commission intends to acquire land shown in the Schedule hereunder on behalf of Kenya Railways Corporation (KRC) in accordance with section 110 of the Land Act for the construction of the Naivasha–Kisumu–Malaba Standard Gauge Railway (SGR Phase 2B and C),” the notice stated.

The commission directed interested parties to inspect plans for the affected land at Ardhi House, third floor, in Nairobi, and at the County Coordinators’ offices in Kisumu and Narok during official working hours.

The acquisition process aims to secure the land needed for railway construction, with compensation for affected landowners handled through the applicable valuation and acquisition procedures.

Kenya’s Standard Gauge Railway

Kenya introduced the SGR to improve passenger and cargo transport and enhance connectivity between Mombasa and other parts of the country. The railway’s first section, linking Mombasa and Nairobi, was launched on May 31, 2017, before being extended to Naivasha

The railway offers an alternative to road transport for moving goods from the coast to destinations across the country.

Freight services facilitate cargo movement from Mombasa Port to logistics centres in Nairobi and Naivasha, where shipments can be transferred for further distribution.

The Naivasha-Kisumu-Malaba extension is part of the government’s strategy to expand rail connectivity to western Kenya and the Ugandan border. The Naivasha-Kisumu segment stretches approximately 264 kilometres, while the Kisumu-Malaba section is planned to cover about 107 kilometres.

The project also proposes a branch line to link the network to Kisumu Port, creating an additional cargo transport route through the Lake Victoria region.

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Govt Announces Ksh25 Billion Compensation Fund For Sgr-Affected Landowners
President William Ruto and Transport CS Davis Chirchir during the launch of the Naivasha-Kisumu-Malaba SGR on March 19 /PCS.
Tags: Kenya RailwaysSGR
Mary Wanjohi

Mary Wanjohi

Mary Wanjohi is a digital news correspondent at The Kenya Times driven by a deep commitment to truth, storytelling, and public service. With a background in Communication and Journalism, she has developed a strong foundation in news reporting, feature writing, and investigative research. Mary is passionate about uncovering stories that matter from community issues and social justice to politics and culture. She approaches every assignment with curiosity, integrity, and a dedication to accuracy. Her work reflects a belief that journalism is not just about reporting facts, but about giving voice to the voiceless and holding power to account. She can be reached at [email protected]

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