President Uhuru Kenyatta has opened the train linking Nairobi and Naivasha at the Nairobi Terminus on the outskirts of the country.
This is the second phase of the infrastructure project, a Chinese-funded and built railway that will link the port of Mombasa to Uganda.
The new track is 120 kilometers and has 12 stations. The track will lead to an inland container depot, from where containers will be distributed to Uganda and Rwanda, and to South Sudan.
The 1.5 billion dollars construction of the second phase comes up on the $3.2 billion spent for the first stretch from Mombasa to Nairobi.
Many believe the cost of the railway is plunging Kenya into debt.
The railway currently generates $75 million per year from passengers and cargo.
Kenya hopes to see increase in revenue when the railway is connected to the neighboring countries.