President William Ruto has signed the Miscellaneous Fees and Levies (Amendment) Act, 2026 into law, expanding the Railway Development Levy to support future railway infrastructure projects.
The amendment was among three Bills signed at State House in Nairobi on Friday.
Government officials say the new law is intended to secure long-term funding for the development of Kenya’s railway network.
Expanding the railway levy
The Railway Development Levy was initially introduced to finance the construction of the Standard Gauge Railway.
However, the new law expands its scope to support broader railway infrastructure projects.
President Ruto said the amendment strengthens the financing framework for rail transport.
“The Miscellaneous Fees and Levies (Amendment) Act expands the scope of the Railway Development Levy beyond the Standard Gauge Railway to support broader railway infrastructure and strengthen financing and management of the levy,” Ruto said.
The legislation also establishes the Railway Development Fund Board to manage the funds collected through the levy.
Deputy President Kithure Kindiki said the reforms will help fund future railway expansion.
“The Miscellaneous Fees and Levies Amendment Act creates a fund for the development and expansion of Kenya’s railway network into the future,” Kindiki said.
Why the government is focusing on rail transport
Kenya has been investing heavily in transport infrastructure to improve trade and logistics.
Rail transport plays a key role in moving cargo efficiently and reducing pressure on highways.
Expanding the railway network could also lower the cost of transporting goods between major economic centres.
Transport experts say sustainable financing will be essential as Kenya plans future railway projects.
The new law is expected to provide a more stable funding framework for rail infrastructure.
Officials believe stronger railway systems will boost economic growth and strengthen regional trade.
