Skip to end of metadata
Go to start of metadata

Kenya Logistics Infrastructure Narrative

In the past decade, infrastructure contributed 0.5 percentage points to Kenya's annual per capita GDP growth. Raising the country's infrastructure endowment to that of Africa's middle-income countries could increase that contribution by 3 percentage points. Several accomplishments are notable. More than 90 percent of the population has access to GSM cell signals. A successful public-private partnership in air transport has made Kenya's airline a top carrier in the region and its international airport a key gateway to Africa. Institutional reforms in the power sector have reduced the burden of subsidies on the public by approximately 1 percent of GDP.
But the power sector continues to pose Kenya's greatest infrastructure challenge. Over the next decade, current capacity will have to double. A second challenge is to improve the efficiency of operations at the Port of Mombasa. Other concerns include low levels of access to household services, underfunding of road maintenance, and negative progress on the Millennium Development Goals for water supply and sanitation. Addressing Kenya's infrastructure deficit will require sustained expenditures of approximately $4 billion per year (20 percent of GDP) over the next decade. If Kenya is unable to increase infrastructure spending, it could nevertheless meet infrastructure targets in 18 years by eliminating existing inefficiencies in infrastructure sectors.
Northern Corridor is the busiest and most important transport route in East and Central Africa, providing a gateway through Kenya to the landlocked economies of Uganda, Rwanda, Burundi and Eastern DR Congo. It also serves Southern Sudan since it broke away from Khartoum.
The main Northern Corridor transport network is connected to the Port of Mombasa and includes a road network; railways; rail-lake transport; inland water routes; container terminals commonly regarded locally as ICDs (Inland Container Depots); Tororo Inland Port - whose contract was awarded to Great Lakes Ports Limited of Kenya amid opposition from clearing firms and truck transporters; plus an oil pipeline.
The alternative transport network serving the landlocked Great Lakes Region is through Tanzania, called the Central Corridor linked to Dar es Salaam.
The aim of the Kenya Railway Expansion is to construct a high capacity Standard Gauge Railway (SGR) network in Kenya with connections to the East Africa region. The proposed project will be financed through a public-private partnership and implemented under the Kenya Railway Corporation and Rift Valley Railways over a period of five years. When completed in 2017, the 431 billion Kenyan Shilling (USD 5.2 billion) project will supplement Kenya’s northern rail corridor with 120 kilometer per hour freight trains and 180 kilometer per hour passenger fleets. The project aims to transfer freight and passengers from roads to rail, reducing road damage and providing safe and rapid intercity transportation.
In February 2012, Kenya Railways Corporation petitioned the National Treasury for 13.1 billion Kenyan Shilling tax liability waivers. This waiver was approved, and now the rail expansion project needs an additional 70 billion Kenyan Shillings of public subsidy before it can be completed under Vision 2030.

The following two rail corridors are part of the national Kenya Railway Expansion project and serve as flagship projects under Vision 2030. If completed, these rail expansion projects will change the way that people move between Nairobi and its neighboring cities.

1. Mombasa-Nairobi-Malaba Corridor
The Government of Kenya is currently inviting partners to develop Standard Gauge Rail (SGR) linking the Port of Mombasa with the cities of Nairobi, Kenya and Malaba, Uganda. The Kenyan and Uganda Governments have signed a bilateral agreement for this railway development and are in the process of identifying consultants to undertake the preliminary design.

2. Nairobi Commuter Rail Network
The project consists of construction of new railway stations as well as expansion and renovation of the Nairobi railway station. The Syokimau Railway Station is 95% complete, and procurement has begun for the remaining new railway stations. In addition, detailed designs for construction of the 6 kilometer Long Branch that extends from Embakasi to the Jomo Kenyatta International Airport are complete.