Kenya to tap 90pc of railway levy for SGR bonds

An SGR passenger train departs from the Miritini station in Mombasa, bound for Nairobi on July 7, 2025. To fund the SGR extension to the Ugandan border, the State could issue two bonds to raise about $3 billion (Sh387 billion) for the railway line.

Photo credit: Kevin Odit | Nation Media Group

Kenya plans to tap up to 90 percent of annual collections from the Railway Development Levy (RDL) to secure additional financing for railway projects, under proposed legal changes before Parliament.

The Miscellaneous Fees and Levies (Amendment) Bill, 2025 seeks to amend the Miscellaneous Fees and Levies Act to expand how proceeds from the Railway Development Levy Fund (RDLF) can be used. The levy is charged at two percent of the customs value of all imported goods.

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