The purpose of the article is to develop theoretical and practical recommendations on improving the use of the development potential of the railway sector of the Republic of Kazakhstan, studying regulatory measures by the country and determining their development prospects.The methodology of this article was theoretical and empirical research methods: analysis of the state of the country's railway complex, its problems and ways to solve them, as well as the study of the railway transportation process and its regulation. Analysis of literature on the research problem, comparison and systematization of empirical and theoretical data, systemic approach to the studied problems of the article, method of qualitative comparison, statistical method.Originality/value of the research: Railway transport is one of the basic sectors of the economy of Kazakhstan, providing its internal and external transport and economic relations, and the transportation needs of the population, therefore it is important to improve the development strategy of the country's railway transport at the Government level. The state will be able to optimize the railway transport sector by obtaining useful information as a result of this article.Conclusion: In order to successfully develop the railway transport market in Kazakhstan, the state must play a more active role as a strategic consultant, which will take on issues of long-term planning, forecasting, analysis and preparation of recommendations to market participants. In this regard, we believe that Kazakhstan needs a separate program for the development of railway transport.