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Kenya Plans $1.7 Billion Railway to Transport Crude Oil to Indian Ocean Port

The government of Kenya is planning to construct a 640-kilometre railway line to transport crude oil from the country’s north-western oil fields to a port on the Indian Ocean.

The Kenya crude oil railway project, estimated to cost $1.7 billion, is expected to be completed by 2030 and will provide a dedicated transport corridor for petroleum resources while also supporting the movement of other commercial goods.

Officials say the railway could play a key role in strengthening Kenya’s emerging oil industry by providing a more reliable, cost-effective logistics system for transporting crude oil to export terminals.

The proposed railway will use rail tank cars to transport crude oil from oil-producing areas in north-western Kenya to the country’s coastline. Beyond petroleum transport, planners intend for the line to handle a variety of freight, including clinker, cement, and mineral resources, allowing the infrastructure to support multiple industries.

By diversifying the types of cargo transported, authorities hope to improve the railway’s commercial viability while increasing freight capacity across the country. Transport experts say multi-purpose rail corridors often generate higher economic returns because they can serve both the energy sector and broader industrial supply chains.

Kenya has decided to build the new railway using meter-gauge track, rather than the more modern standard-gauge railway system used in some of the country’s newer rail projects. Officials say the meter-gauge option was selected because it is significantly cheaper and easier to construct, particularly across remote regions where infrastructure remains limited.

Meter-gauge railways require narrower tracks and lighter infrastructure, reducing both construction complexity and overall project costs. The decision also reflects the government’s aim to deliver a functional transport system for crude oil exports while keeping investment costs within manageable levels.

The Kenya crude oil railway is closely linked to the development of the country’s oil reserves located in the north-western region. Transporting crude oil from inland fields to coastal export facilities has long been a major logistical challenge for Kenya’s oil sector.

Officials believe that building dedicated transport infrastructure could unlock greater investment in energy production while strengthening Kenya’s position in regional energy markets.

In addition to supporting oil exports, the new railway could stimulate economic activity along the corridor by improving transport access for industries operating in remote areas. Railways often encourage the growth of industrial zones, logistics hubs and mining operations along their routes, creating opportunities for job creation and regional development.

Once completed as planned, the Kenya crude oil railway project could become a key piece of infrastructure linking the country’s natural resources with international export markets while supporting broader economic growth.

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