Taxpayers will pay Sh2.8 billion more for government to compensate land owners, for the construction of the Standard Gauge Railway (SGR).

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Transport Principal Secretary Irungu Nyakera says compensation amounts to Sh33 billion which is 10 per cent of the Sh327 billion total cost of SGR.

''The land compensation cost for SGR is Sh33 billion,'' he said, Monday at the Land Summit at State House.

This is contrary to a report released in March by the National Land Commission (NLC) which stated that land acquisition would cost Sh30.2 billion.

NLC had as well said 4,616 hectares of land would be acquired for the project and delegated the payment to Kenya Railways.

Construction of the multi-billion SGR project is expected to be completed by 2017.