The railway line between Nairobi and the port city of Mombasa is to be repaired by the operator of the Kenya-Uganda railway, Rift Valley Railways (RVR).
RVR is a consortium that was established to administrate the state railways of Kenya and Uganda, and it currently manages about 2,000 km of railway track in both countries.
The company said it would more than double train speeds on the Nairobi-Mombasa line from under 30 km to about 70 km per hour.
The section of track to be replaced is about 70 km long and RVR will progressively increase train speeds as soon as each stretch of track is updated. The company bought $19 million worth of tracks and accessories from China to repair dilapidated sections of the Nairobi-Mombasa railway line.
The firm availed of a $164 million loan with six development-finance institutions and Kenya's Equity Bank (EQBNK), and is reportedly seeking a further €62 million in funding to purchase new freight wagons and restore existing ones.
By 2015, RVR plans to triple its combined annual cargo capacity to 4.5 million tons, out of a total of 26 million tons of cargo at Mombasa port.