The Kenyan government has signed a contract to build the section from Naivasha to Malaba in Uganda (Phase 2B) of the Standard Gauge Railway (SGR). The cost of phases 2B and 3 is estimated at €12.1 billion (US$13 billion). Originally, the SGR was to run from Mombasa to Kisumu, but a lack of funds led to the cancellation of work after the completion of Phase 2A Nairobi – Naivasha, which was financed by a €4.6 billion loan from the Chinese Export-Import (Exim) Bank. The announcement for the Phase 2B construction contract followed Kenya's return to the Eurobond market. There, Kenya sold a €1.4 billion Eurobond maturing in 2031. To repay existing loans and cover rising fuel costs, operator Kenya Railways (KR) increased fares on the 470 km Phase 1 of the SGR in November 2023. The government also announced the start of feasibility studies for phase 3.
