The Mombasa-Nairobi Standard Gauge Railway, built by China Communications Construction Company and financed by a $3.2 billion loan from Exim Bank of China, began commercial freight operations in 2018. The SGR offers importers a scheduled 8-hour freight transit from Mombasa port to Nairobi's Inland Container Depot, significantly faster than the Northern Corridor highway's typical 3-4 days. Containerised cargo throughput on the SGR reached 6.5 million tonnes in 2023, though below the 7.4 million tonne target required for loan serviceability.
Financial Stress
SGR loan repayments to Exim Bank are estimated at $500 million annually, consuming approximately 40 percent of Kenya Ports Authority's revenues. The government has explored SGR commercialisation through a concession to a private operator, but negotiations have stalled over revenue-sharing terms. The planned extension to Kisumu and Malaba on the Uganda border, which would transform the SGR into a genuinely regional corridor asset, remains unfunded. Freight forwarders and importers using the Mombasa corridor can access SGR schedules and haulage contacts on intra-africa.com.
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