It actually kenya who pulled the plug on M7 as a revenge for oil pipeline.
Kenya doesn't really need to extend the line beyond Naivasha or Kisumu or Eldoret.
Unless it was to worry about 75% of 25% of cargo that is Uganda bound. 75% of cargo in Mombasa is kenyan.
Therefore kenya want to go to Kisumu and terminate it there - with a port - where Uganda or Rwanda or TZ can use ships for the last mile to Jinja, Kampala, Mwanza and etc.
If not - Kenya want Uganda to help fund extension to Malaba or China to provide that as a grant.