This archive report was first published on 8 July 2020.
Kenya Pipeline Company Invests in Reviving Nairobi-Nanyuki Railway Line ¶
Published on July 8, 2020
The Kenya Pipeline Company is investing Sh1.8 billion to help rehabilitate the 240km Nairobi-Nanyuki Railway line, a project expected to unlock the economic potential of Central Kenya.
The funding is part of the KPC’s remittance to the Exchequer in the form of special dividends.
The final rehabilitation of the railway line, which was last used in the late 1990s, is gaining momentum with the arrival of train wagons at Nanyuki terminus.
The revived railway line will reduce transportation costs for agricultural produce, revive industries, create jobs, and decongest the busy Nanyuki-Nairobi highway.
Kenya Railways expects to generate more than Sh370.4 million per year from the revived 240km line.
The corporation has finalised negotiations on proposed rates with the business community for cargo and passenger trains, with most of the revenue coming from commercial operations.
“Connecting the entire Central Kenya to the railway line will give economic impetus to the region that boasts of over 10 million in population with a combined economy of $40 billion, we are bigger than some countries,” Governor Muriithi observed.
Vivo Energy Kenya, the anchor client for commercial trains, intends to transport 14 million litres of fuel every month from Nairobi to its depot in Nanyuki.
Investors ferrying livestock from Laikipia county will be paying Sh730 per ton of cattle and Sh465 per ton of small animals.
Other cargo such as fertiliser, cereals, hardware and farm products among other general cargo will be ferried to and from Nairobi for Sh1,400 per ton.
