Kenya and Uganda have agreed to add 2,746 kilometers to the Standard Gauge Railway (SGR), increasing the total project cost to over 19.4 billion USD. The SGR extension is part of the larger 24.1 billion USD Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor plan. Uganda aims to extend the SGR to its borders with Rwanda, South Sudan, and the DRC.
Financing agreement for the SGR extension
Kenya and Uganda have jointly signed a communiqué on financing the SGR extension. This agreement paves the way for an ambitious infrastructure project connecting the two economies. The initiative will guide the development of two major rail projects: the Naivasha-Kisumu-Malaba and Malaba-Kampala standard gauge railway (SGR) links. Once the financing for the SGR extension is secured, the projects will be implemented in the respective countries.
The agreement was formalized in the presence of Kenyan Transport Minister Kipchumba Murkomen and his Ugandan counterpart, Edward Katumba-Wamala. While Kenya has already signed commercial contracts for its SGR sections, Uganda is in the process of finalizing the contract for the Malaba-Kampala link. Both governments are actively working to mobilize funds for these rail projects.
Previously, the two countries had planned joint financing but faced significant delays. Now, they have chosen to independently seek funding for their respective SGR sections. Kenya has already expressed its desire to seek funding for the Naivasha-Kisumu-Malaba SGR section.
Regional integration through rail
The railway development will bring substantial benefits, including reducing transportation costs for businesses. The project will be carried out as part of a regional initiative integrating northern corridor integration projects.
To enhance connectivity and attract funding for the SGR extension, the governments have committed to simultaneously building the Naivasha-Kisumu-Malaba and Malaba-Kampala sections. They have also pledged to accelerate the funding process for the SGR sections.
Collaborating with Sub-regional countries
Murkomen and Wamala have also agreed to address any issues that could hinder financing and negatively impact the projects. They acknowledged the need to reach out to neighboring countries, Rwanda, South Sudan, the DRC, and Burundi.
Uganda is taking the lead in extending the SGR to its borders with Rwanda, South Sudan, and the DRC to enhance viability and attract funding along the northern corridor. The declaration states that Uganda would seek financing for the Western SGR route (Kampala-Kasese-Mpondwe with a spur line from Bihanga-Mirama Hills) immediately after securing financing for the Eastern SGR route from Malaba to Kampala.
Both countries have committed to coordinating their construction plans for the remaining SGR sections and prioritizing the resource mobilization schedule to ensure smooth progress and successful project completion.
Birth of the SGR concept
In 2014, Kenya entered a tripartite agreement with Rwanda and Uganda to construct an SGR linking Mombasa to Kigali via Kampala. However, the SGR abruptly ended at Naivasha, with China refusing to finance the final stage of the project. According to reports, China failed to reach a financing agreement with Uganda.
With this latest initiative, it seems President William Ruto has revived efforts to complete and extend the SGR. Earlier this year, Murkomen stated that Kenya would extend the SGR from Naivasha to its border with Uganda. The Minister said the project is part of a five-year plan that will see the SGR pass through Narok, Bomet, Nyamira, Kisumu, and Malaba.
