en.Wedoany.com Reported - African investment fund Afri Fund Capital recently disclosed a $6 billion cross-listing debt financing plan to advance the critical infrastructure of the Lamu Port-South Sudan-Ethiopia Transport Corridor through a private sector-led financing model. The funds will be directly invested in the construction of the Standard Gauge Railway from Lamu Port to Moyale on the Ethiopian border, along with the development of a high-capacity road network and specialized logistics hubs.
The corridor will establish a second strategic transport artery, creating a "land bridge" connecting livestock, minerals, and manufactured goods, covering a consumer market of over 100 million people. Economic zones and resort cities will be established along the route to promote industrialization and tourism, shifting the economic focus towards the northern border regions. The funds will be used for the high-capacity road network, the Lamu to Moyale Standard Gauge Railway, and dedicated logistics hubs.
According to Kenya Railways estimates, the LAPSSET Standard Gauge Railway spans a total length of 2,377.45 kilometers, with an estimated total cost of approximately 2.4 trillion Kenyan Shillings ($16 billion), or about 1 billion Kenyan Shillings ($6.667 million) per kilometer. Specifically, the Lamu to Isiolo section (544.4 km) requires 523.05 billion shillings ($3.49 billion); the Isiolo to Moyale section (475.9 km) requires 476.7 billion shillings ($3.178 billion); the Isiolo to Nairobi section (278.6 km) requires 358.8 billion shillings ($2.392 billion); and the Malkaani to Lamu section (325.35 km) requires 385.95 billion shillings ($2.573 billion).
In 2014, Kenya launched the first phase of the Mombasa to Nairobi Standard Gauge Railway, spanning 472 kilometers. The Nairobi-Naivasha section (120 km) was completed in 2017. The new corridor will extend the Standard Gauge Railway to the Ethiopian border and expand the Nairobi Embakasi Inland Container Depot as well as the Naivasha and Mai Mahiu ICDs, aiming to alleviate congestion at Mombasa Port and achieve seamless cargo transport.
Previously, feasibility studies were completed by Japanese port consultants in 2009 and China Civil Engineering Group in 2015, estimating the project cost at $10.4 billion. Currently, due to funding shortages, security concerns, and foreign currency debt pressures, the Standard Gauge Railway development has not commenced. Kenya Railways plans to raise 275.9 billion shillings ($1.84 billion) in the 2027/28 fiscal year, accounting for 11.4% of the total cost, with sources including central government allocations, borrowing, and revenue from the Railway Development Levy Fund.
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