Kenya Could Have Saved KSh116 Billion on SGR Construction - World Bank Report

According to the report, Kenya's Mombasa–Nairobi SGR cost approximately KSh988 million per kilometre, compared to KSh741 million for Tanzania's Dar es Salaam–Dodoma railway.

A comparison of railway construction costs in East Africa suggests that Kenya could have saved approximately KSh116 billion (US$900 million) on the initial construction of the Standard Gauge Railway (SGR) between Mombasa and Nairobi if it had been built at a cost comparable to Tanzania's Dar es Salaam–Dodoma railway.

The cost comparison is highlighted in the World Bank's Kenya Economic Update report released on Wednesday, November 4, 2026.

The international lender attributed a significant portion of Kenya's higher construction costs to governance challenges, rather than topographical or technical differences.

Specifically, the report identified the preference for direct contracting over competitive tendering, land speculation, and outright fraud involving land titling, valuation, and compensation payments.

Source: Nairobi Leo