News Infrastructures

World Bank Reviews $500 Million Loan for Nairobi Commuter Rail Upgrade

World Bank Reviews $500 Million Loan for Nairobi Commuter Rail Upgrade
Tuesday, 10 March 2026 15:28
  • Project to modernise 57km Nairobi-Thika corridor and rail systems
  • Plan supports broader strategy including Nairobi BRT expansion

The World Bank is reviewing a $500 million loan application to upgrade Nairobi’s commuter rail network, a project aimed at transforming mobility across the Kenyan capital’s metropolitan area by modernising commuter rail services and reforming the governance framework for urban transport.

The project will be implemented in phases and includes upgrading the 57-kilometre Nairobi-Thika corridor into a high-capacity urban rail system, modernising stations and intermodal hubs, and upgrading signalling and telecommunications infrastructure. It also covers public-facing services such as ticketing systems and the establishment of rail maintenance operations.

Currently at the concept stage, the project is scheduled for approval by the World Bank’s Board of Directors in December 2026. It comes as Kenya moves to expand its public transport system in a bid to ease chronic congestion on Nairobi’s roads, in a city home to nearly 5.5 million people, according to World Population data.

Beyond rail, Bus Rapid Transit (BRT) is also being positioned as a key pillar of this broader mobility strategy. Last week, the Kenya Urban Roads Authority (KURA) announced it had signed an agreement with South Korean consortium YOUNGJIN Joint Venture to construct Line 5 of Nairobi’s BRT network.

Together, these services are expected to form an integrated transport system aimed at reducing private vehicle traffic and curbing the dominance of matatus, privately operated minibuses that currently account for the bulk of Nairobi’s public transport.

Henoc Dossa 

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