Kenya Plans Major $1.7 Billion Railway Revamp for Crude Oil Exports by 2030

Kenya is considering extending a colonial-era railway to reach its north-western oil fields, establishing a route to export crude to an Indian Ocean port by 2030.

The proposed plan involves constructing about 640 kilometres (400 miles) of meter-gauge railway from Nakuru in the Rift Valley to South Lokichar, with projected costs around 220 billion shillings ($1.7 billion), according to a parliamentary report approving Gulf Energy Ltd’s field development plan.

Using rail tank cars is viewed as a “more cost-effective, flexible, and multi-use infrastructure solution,” Bloomberg reported, highlighting that the line could support the oil project while linking to Kenya’s wider transport network.

Beyond crude oil, the railway is expected to transport clinker, cement, and other minerals, enhancing its commercial potential.

Kenya prefers a meter-gauge line over a standard-gauge alternative because it “navigates the topography with minimal tunnelling,” which lowers both construction difficulty and costs. A standard-gauge option would add roughly 300 billion shillings to the project.

Early Transport Plans

Previously, Tullow Oil Plc, which sold its Kenyan assets last year to reduce debt, had proposed a $3.4 billion pipeline, though initial oil shipments 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 per day using insulated road tankers. As production ramps up, volumes could reach 50,000 barrels daily, to be carried in insulated, steam-heated rail wagons.

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