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Kenya is restarting its stalled railway using domestic financing, marking a strategic shift away from external debt and toward self-funded infrastructure.

Kenya has taken a decisive step to revive its long-stalled Standard Gauge Railway (SGR) extension, signaling a new era in how the country finances large-scale infrastructure. After years of delays tied to reduced external funding, particularly from China, the government has opted for a domestically driven financing model.

The project will now be funded through revenue securitization from the Railway Development Levy, allowing Kenya to leverage its own fiscal mechanisms rather than relying heavily on foreign loans. The extension from Naivasha to Malaba at the Uganda border is expected to significantly improve trade efficiency across the Northern Corridor.

Beyond infrastructure, this move reflects a broader policy shift: economic sovereignty in development financing. By investing in its own long-term infrastructure, Kenya is positioning itself as both a regional logistics hub and a model for alternative financing approaches in Africa.

However, questions remain around cost efficiency, project timelines, and whether domestic funding can sustain such capital-intensive projects at scale

Kenya Bets on Itself: SGR Revival Signals Shift in Infrastructure Financing

19. March 2026/ Urge- DeveWire

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