The Cabinet Secretary revealed that 60 Kenyan students have also been offered scholarships to pursue various railway and train related engineering courses in Chinese universities.
Another 300 technicians trained by CRBC at the Railway Training Institute are currently attached to the SGR project.
Mr Lu said his company has offered Sh1 billion to develop an engineering school at the Railway Training School.
Phase 1B of the SGR project, which will run from Nairobi through Naivasha to Narok was also discussed.
Mobilisation of resources has started with land acquisition and construction set to begin in April.
The meeting was also attended by Transport Principal Secretary Irungu Nyakera, Kenya Railways Managing Director Atanas Maina and Chinese Ambassador to Kenya Liu Xianfa.
President Kenyatta commended the progress saying project was important in transforming the country’s transport sector.