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Kenya and Uganda Seek Financiers for Stalled Naivasha-Kampala Standard Gauge Railway Project

Joel Mugonyi by Joel Mugonyi
July 29, 2023
in News
Reading Time: 2 mins read
SGR

SGR. [Photo/ courtesy]

The Kenyan and Ugandan governments are actively seeking financiers for the Naivasha-Kisumu-Malaba-Kampala Standard Gauge Railway (SGR) project, which has faced delays due to a lack of funds.

Both countries are in agreement about the importance of working together to ensure the project’s maximum benefit for the region. A joint communique signed by Kenya’s Roads and Transport Cabinet Secretary Kipchumba Murkomen and his Ugandan counterpart Edward Katumba-Wamala emphasized the need to synchronize the construction of the SGR sections to make the project viable.

Read more: World Bank Recommends Replacing Diesel Trains on The SGR With Electrified Trains

In 2016, Kenya and Uganda signed a Bilateral Agreement to connect Mombasa and Kampala through the SGR. Kenya has already completed the Mombasa-Nairobi-Naivasha segment, serving both passengers and freight. However, the construction of the Naivasha-Kisumu-Malaba route is yet to commence.

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While contracts for the Naivasha-Malaba section have been signed on the Kenyan side, the agreement for the Malaba-Kampala SGR is expected to be signed soon.

Read more: List of Persons Who Signed The Infamous SGR Deal

The governments of Kenya and Uganda recognize the significance of addressing challenges that may hinder financing for the project, impacting the two countries’ ability to reach Rwanda, South Sudan, DR Congo, and Burundi efficiently.

Uganda plans to extend the SGR to the border with Rwanda, South Sudan, and DR Congo as soon as possible to enhance the project’s viability and attractiveness for financing along the Northern Corridor. Additionally, Uganda aims to apply for financing for the SGR Western Route (Kampala-Kasese-Mpondwe with a branch line from Bihanga-Mirama Hills) immediately after securing financing for the SGR Eastern route from Malaba to Kampala.

Read more: Kenya Building More Ships For Uganda Fuel To Expand Lake Victoria Trade

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