World Bank: Kenya Overpaid Ksh117 Billion on SGR Railway

The November 2026 Kenya Economic Update estimates Kenya spent US$7.6 million per kilometre on its diesel-powered Standard Gauge Railway, far above Tanzania's US$5.7 million for an electrified line and Ethiopia-Djibouti's US$5.3 million.

Governance problems like direct contracting, land speculation, and fraud in compensation drove at least 30 percent of the excess, costing up to Ksh117 billion.

The report ties this to broader issues draining 2 percent of GDP yearly and calls for anti-corruption steps, as Kenyans demand audits and link it to past administrations while the nation services the debt from railway revenues.