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Kenya and UK explore financing terms for multi-billion Railway City project

Kenya and UK explore financing terms for multi-billion Railway City project
Artistic representation of the Rail City project in Nairobi. PHOTO/Screengrab by PD Digital/https://krc.co.ke/

Kenya has returned to the discussion table to explore the financing model for the ambitious Nairobi Railway City, a multimodal transit-oriented urban development that seeks to establish a new beating heart for the capital and boost the economic and social development of the country.

In the latest round of meetings on Monday, April 14, 2025, Prime Cabinet Secretary Musalia Mudavadi engaged with top officials from the UK who expressed interest in delivering the master plan.

UK High Commissioner Neil Wigan and officials from UK Export Finance (UKEF) were part of the meeting where the National Treasury explored the financing model.

Prime Cabinet Secretary Musalia Mudavadi during a meeting with UK Officials on Monday April 14, 2025. PHOTO/@MusaliaMudavadi/X
Prime Cabinet Secretary Musalia Mudavadi during a meeting with UK Officials on Monday April 14, 2025. PHOTO/@MusaliaMudavadi/X

“Engaged in a key briefing on the financing terms for the multibillion-shilling Nairobi Central Station, the heart of the transformative Nairobi Railway City, between the National Treasury and UK Export Finance (UKEF),” Mudavadi’s read in part.

The meeting is set to unlock the project, which was conceived during Jubilee’s administration and later advanced by President William Ruto’s administration.

However, Mudavadi did not reveal what the meeting agreed upon regarding the project.

Part of the statement shared by Prime Cabinet Secretary Musalia Mudavadi on Monday April 14, 2025. PHOTO/Screengrab by PD Digital/@MusaliaMudavadi/X
Part of the statement shared by Prime Cabinet Secretary Musalia Mudavadi on Monday April 14, 2025. PHOTO/Screengrab by PD Digital/@MusaliaMudavadi/X

Nairobi Railway City

The Project sits on 425 acres of prime, underutilised land within the Central Business District (CBD) of Nairobi. A vast majority of this land is owned by Kenya Railways, Kenya Railways Staff Retirement Benefit Scheme (KRSRBS) and other government agencies.

It is themed to provide non-Motorised Transport corridors in every precinct of the development, allowing for easy movement of pedestrians, who make up a majority of Nairobi residents.

Railway City has an expanded Central Station, new Bus Rapid Transit (BRT) lines and stations as well as revamped matatu termini that will allow Nairobians clear transit pathways.

During the meeting, Mudavadi revealed that the issue of BRT also featured.

“Also advanced discussions on fast-tracking Kenya’s commitments toward the upcoming rollout of Bus Rapid Transport Line 3 and Commuter Rail Lines 2 and 5, to be unveiled at the next GoK/G7+ Transport Heads of Mission meeting,” Mudavadi added.

Artistic representation of the Rail City project in Nairobi. PHOTO/Screengrab by PD Digital/https://krc.co.ke/
Artistic representation of the Rail City project in Nairobi. PHOTO/Screengrab by PD Digital/https://krc.co.ke/

“The new Nairobi Central Station and adjacent public realm will be the iconic centrepiece of a new Railway City and the focal point of Nairobi’s new multimodal urban transportation network. The Central Station’s landmark design incorporates the existing stations’ heritage in a new design that links to and integrates with the new Bus Rapid Transit Project,” Kenya Railways explained in the project proposal.

“Kenya Railways seeks to develop a unique, state-of-the-art railway station that will increase the stations capacity to cope with a rapidly expanding commuter network. The station will provide seamless interconnectivity with the city through Non Motorized Transport (NMT) corridors and other integrated transit nodes such as the bus rapid transit (BRT) project. The intended outcome is a safe and secure environment at the station for everyone.”

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