Kenya is weighing a $1.7 billion plan to modernise and extend a colonial-era railway toward its north-western oil fields, opening a new corridor to move crude to an Indian Ocean port by 2030. Africa.
According to africa.businessinsider.com, the proposed upgrade is aimed at strengthening export infrastructure, lowering transport costs, and accelerating the country’s ambitions as an emerging oil producer.
The project would involve building roughly 640 kilometres (400 miles) of meter-gauge railway from Nakuru in the Rift Valley to South Lokichar, at an estimated cost of 220 billion shillings ($1.7 billion), according to a parliamentary report approving Gulf Energy Ltd’s field development plan.
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Using rail tank cars is seen as a “more cost-effective, flexible, and multi-use infrastructure solution,” Bloomberg reported, noting the line could serve not only the oil project but also integrate with Kenya’s broader transport network.
Beyond crude, the railway is expected to carry clinker, cement, and minerals, improving its commercial viability.
Kenya favours a meter-gauge line over a standard-gauge railway because it “navigates the topography with minimal tunnelling,” which reduces both construction complexity and cost. A standard-gauge alternative would add roughly 300 billion shillings to the project.
Early Transport Plans
Tullow Oil Plc, which sold its Kenyan assets last year to reduce debt, had previously planned a $3.4 billion pipeline, but early oil volumes were transported to the coast by truck.
In the first four years, Gulf Energy, Tullow’s successor in the region, plans to move 20,000 barrels of waxy crude daily using insulated road tankers. Later, production could rise to 50,000 barrels per day, which will be transported in insulated, steam-heated rail wagons.
