The World Bank has estimated that Kenya could have saved up to Ksh117 billion during the initial construction of the Mombasa–Nairobi Standard Gauge Railway if it had matched Tanzania’s construction cost per kilometre. The report compares the cost structures of the two East African nations.
Kenya’s SGR project, completed in 2017, faced higher expenses compared to Tanzania’s similar railway. The World Bank analysis shows that by adopting Tanzania’s more efficient construction practices, Kenya could have significantly reduced its financial burden. The report also notes that corruption remains a major challenge for Kenya’s economic growth.
The World Bank previously warned that corruption is a key obstacle to Kenya’s development. In 2025, 39 per cent of businesses in Kenya reported corruption as a major or severe constraint, up from 25 per cent in earlier years. The SGR project, a key infrastructure initiative, has been a focal point for discussions on transparency and cost management.
The findings underscore the importance of cost efficiency in large-scale infrastructure projects. The World Bank’s report calls for improved governance and transparency to ensure better value for public investments. The SGR remains a symbol of regional connectivity, but its high costs have sparked debates on fiscal responsibility.
