Abstract: Railways are of great significance to the development of cities and towns. There are a number of small towns in Africa that have been established and grown under the influence of traditional railways. However, with the aging and degradation of these railways, the development of these small towns has been impacted. In recent years, a new round of railway cooperation between China and Africa, initiated under the 'Belt and Road' Initiative, has led to the construction of new railways, revitalizing these small towns with new vitality and energy. This paper divides the development of such towns into four stages: a natural development period, a railway-driven development period, a stable development period, and a new railway re-driven development period. It also selects Athi River Town in Kenya as a case study, summarizing the characteristics of town development in different periods, and analyzing the current situation of town development in terms of industrial development, land use, and spatial layout. The study finds that Athi River Town faces issues such as the need to enhance the driving role of the railway, improve the relationship between the station and the town, and strengthen planning guidance. The study proposes countermeasures to promote the role of the Mombasa-Nairobi Standard Gauge Railway, lead the development of the station and town with the concept of Transit-Oriented Development (TOD), and emphasize the importance of planning guidance. This paper enriches the academic and practical research on the development of small towns in Africa driven by railways.