After years of delays and failed negotiations with Chinese financiers, Uganda and Kenya are moving forward with a renewed commitment to complete their standard gauge railway (SGR) projects at the same time. Leaders from both countries say the joint effort will finally secure a reliable transport corridor connecting Uganda to global trade routes through Kenya’s port of Mombasa.
For businesses, expectations are high but cautious. Maersk Uganda and South Sudan Country Manager Yolisa Khantwane noted that less than one percent of their cargo currently moves by rail due to reliability concerns. She said the SGR would transform perceptions of rail freight, offering a dependable and competitive alternative to road transport.
The current system forces cargo to move by SGR from Mombasa to Naivasha, then onto metre gauge rail to the border before being trucked into Uganda—an arrangement described as inefficient and costly. Uncertainty over Kenya’s commitment to build its section from Naivasha to Malaba has long frustrated Ugandan officials. Chinese lenders previously refused to finance the extension, questioning its viability despite Uganda’s multiple proposals.
In response, Uganda shifted strategy, contracting Turkish firm Yapi Merkezi to construct the 272-kilometre Malaba-Kampala line under a €2.7 billion ($3.16 billion) deal. Preliminary works are already underway with €75 million ($87.6 million) secured for the initial phase, while financing is being finalized through a mix of export credit agencies from the UK, China, Turkey, and the Middle East, alongside development lenders and government contributions. Citibank is arranging the transaction.
Kenya, meanwhile, has announced plans to build the 475-kilometre Naivasha-Kisumu-Malaba stretch at a cost of $4.45 billion. Authorities have completed environmental reviews and assessments of project-affected persons to pave the way for construction.
Ugandan Transport Minister Gen Edward Katumba Wamala said lessons from past financing delays have informed new measures, including advancing initial funds before financial close. He confirmed that construction is targeted to begin in April 2026, with plans to later extend the railway north and west toward South Sudan, Rwanda, and the Democratic Republic of Congo.
Kenya’s SGR project coordinator Perez Wamburu stressed that the goal is to commission both lines at the same time, ensuring a seamless connection across the border. Industry leaders agree that synchronized delivery will be a “game-changer,” promising lower logistics costs, improved reliability, and stronger regional competitiveness.
Waiswa Bageya, Permanent Secretary in Uganda’s Ministry of Works and Transport, underlined the urgency of the project, calling the SGR “long overdue” given Uganda’s heavy burden of transport costs.
