Uganda rekindles Optimism that Kenya will Extend its SGR to Malaba

The announcement by Uganda that the Standard Gauge Railway (SGR) will begin construction in August gives hope a second chance for the extension of Kenya’s Sh327 billion project, whose viability depended on the Ugandan section.

After Kampala was unable to obtain funding from China, Uganda claims to have secured funds from the Standard Chartered Bank with a Turkish company being awarded the contract to build the railway line.

In the past, Uganda sought funding from China Exim Bank to build its portion of the Malaba-Kampala railway as part of the northern corridor project, which mandated that each member state build a modern railway line in their respective States.

“What I want to assure you is that come August, you will see the construction of Standard Gauge Railway on our land,” said Uganda State Minister for Works Fred Byamukama.

Phase two of Kenya’s SGR, which was expected to cost Sh380 billion, was put on hold at Naivasha after China insisted that Uganda demonstrate its commitment to building its portion of the modern railway before it will provide additional funding for the extension from Naivasha to Malaba.

For Kenya to receive additional funding for the final section of the railway line that would run to the border town, Uganda had to agree to build a line from the Malaba border to Kampala.

In order to use Kisumu’s renovated port as a gateway to landlocked countries, the Ministry of Transport had threatened to divert the line from Malaba to Kisumu if Uganda did not agree to build the SGR line.

In order to increase trade in the region, leaders from Uganda, Kenya, Tanzania, South Sudan, and Rwanda broke ground in 2014 for the construction of the SGR that will connect the member states.