Kenya is negotiating with the United Arab Emirates' Etihad Rail for the latter to manage freight operations on the Standard Gauge Railway (SGR) under a concession, a move aimed at funding the railway's extension. This initiative seeks to attract private investment and improve efficiency in the railway sector.

• Etihad Rail would invest in rolling stock and operate freight services, targeting 17 million metric tonnes annually to break even.
• The Kenyan government would retain ownership of the railway infrastructure through Kenya Railways Corporation.
• The extension from Naivasha to Kisumu and Malaba is estimated to cost Ksh516.92 billion ($4 billion), to be financed by securitizing the 2 percent railway development levy, which currently yields about Ksh50 billion ($387 million) annually.
• This deal marks a shift from the original Chinese-centric approach, signaling Kenya's interest in diverse funding streams and private sector expertise.