Govt Announces Ksh220 Billion Railway Project Connecting Turkana Oil to Nakuru

Govt Announces Ksh220 Billion Railway Project Connecting Turkana Oil to Nakuru

Kenya plans to build a metre gauge railway of about 640 km from Rongai in Nakuru to South Lokichar in Turkana at a projected cost of Ksh220 billion, replacing the earlier plan for an 892 km crude oil pipeline to Mombasa, which would have cost about Ksh193.87 billion.

Gulf Energy will start producing crude from Blocks 10BB and 13T by December 2026, initially trucking 20,000 barrels per day to the port, with the MGR handling exports from January 2032 when daily output is expected to hit 50,000 barrels.

As reported by the Business Daily, the MGR extension will eventually reach Nakodok at the South Sudan border, using 155 insulated train wagons daily in phase two.

Gulf acquired the blocks from Tullow Kenya BV for Ksh15.5 billion and leased an onshore oil rig for Ksh1.93 billion to meet the first oil target.