Kenya, Uganda revive SGR railway extension deal, mull joint resource mobilization

The governments of Kenya and Uganda have now revived the plans to build a standard gauge railway (SGR) between them, with each of them pursuing individual financing for their SGR portions, with Kenya signing commercial contracts and Uganda set to finalize its deal soon.

These steps signal renewed efforts in both countries to upgrade infrastructure along the Northern Corridor for better trade. The governments of Kenya and Uganda signed on Friday (28 July) a contract to finalize joint resource mobilization in the next four months to secure funds for the extension of the SGR. But the joint declaration is dependent on how soon a financier comes on board. It is lack of funding that killed the earlier plans, rendering the SGR the ‘railway to nowhere.’ This time, ministers in charge of transport from both sides said they are renewing a joint search for funds, which could include loans or public-private partnerships.

If the plan remains on course, the contractor should be on site from December to start the construction of a modern railway line from Naivasha to Malaba to Kampala and from Kampala to Kasese-Mpondwe with a branch line from Bihanga to Uganda’s frontier towns with Rwanda and South Sudan. Once completed, goods moving from Mombasa to the Uganda border with Rwanda and South Sudan will be ferried on SGR.

The two governments have signed another deal which will also increase the usage of rail to haul Uganda cargo using SGR from Mombasa to Naivasha and on the meter gauge line from Naivasha to Malaba within months.