The Naivasha–Kisumu Standard Gauge Railway is among key transport projects lined up for support under a new financing plan approved by the Cabinet, as the government shifts to speed up infrastructure delivery while reducing strain on public funds.
In a Cabinet dispatch, the government said the new financing model will focus on drawing in private capital and widening funding options for priority transport projects that have faced delays due to high upfront costs under public funding alone. The approach is aimed at unlocking stalled projects while ensuring better planning and shared responsibility between the public and private sectors.
The plan covers Phase 2B of the Naivasha–Kisumu SGR, the proposed SGR extension to Uganda, and the Nairobi Railway City Central Station. The Cabinet said these projects place rail transport at the centre of the country’s transport network and regional integration plans.
Urban transport has also been prioritised under the model. Projects included are Bus Rapid Transit Lines 2 and 3, commuter rail services, and non-motorised transport facilities. The government said these investments are meant to cut traffic congestion and improve movement within major towns and cities.
The Cabinet noted that the financing framework will allow better sequencing of projects and faster rollout, while improving oversight and sharing risks more fairly between the government and private investors. The shift, it added, is expected to deliver better value for money and improve the long-term strength of transport investments.
The government said the planned investments are expected to boost trade, improve the movement of people and goods, and support economic growth. The projects are also aligned with wider goals of improving urban transport, strengthening regional links, and promoting sustainable mobility.
In the same meeting, the Cabinet approved the National Energy Policy, aimed at guiding reforms in the energy sector and speeding up access to modern, reliable and sustainable energy.
According to a Cabinet dispatch released on Monday, the policy addresses long-standing challenges in the sector, including low electricity access, heavy use of traditional biomass, unstable power supply, limited private investment, and rising climate-related risks.
The policy outlines steps to expand renewable energy, strengthen private sector involvement, and promote climate-ready energy systems to support economic growth and social development.
“In support of energy expansion, the Cabinet approved the National Energy Policy to guide sector reforms and accelerate access to modern, reliable and sustainable energy,” the dispatch read.
Cabinet also approved the National Petroleum Policy, updating a framework that has largely remained unchanged since 2004. The revised policy aligns the petroleum sector with the Constitution and takes into account recent oil discoveries and changes in global energy markets.
The petroleum policy seeks to improve governance and regulation, attract investment, strengthen national energy security, and promote value addition across the sector. It also places focus on wider use of liquefied petroleum gas to reduce dependence on traditional fuels, improve revenue management, and protect the environment across upstream, midstream and downstream activities.
