All eyes are on President William Ruto as government of Kenya considers extending the Standard Gauge Railway (SGR) to Malaba to establish an essential link with Uganda.
The public however continues to question the value for money of the existing Mombasa-Nairobi line and the subsequent extension to Suswa (Naivasha) SGR projects, which were intended to accelerate economic growth.
According to government reports, the SGR project was built at a total cost of $3.2 billion (Ksh360 billion), with a major portion financed through loans from the Exim Bank of China in May 2014. Despite promises made during the campaign, the contract’s full terms have not been disclosed to the public.
Presently, the government plans to invest at least Ksh2.1 trillion to complete two projects by 2027: expanding the railway line from Suswa to Malaba and establishing a separate line to Isiolo.
Recently, Kenya and Uganda signed a joint statement on funding and developing two key railway projects: the Malaba-Kampala SGR and the Naivasha-Kisumu-Malaba Standard Gauge Railway.
The two countries have commenced construction on these projects, aiming to raise funds independently after facing challenges with joint financing.
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To facilitate freight transportation to Uganda, both the SGR and meter gauge rail from Naivasha to the Malaba border will be increasingly utilized in the coming months, in line with the agreement’s terms.
Transport CS Kipchumba Murkomen and Ugandan colleague Edward Katumba-Wamala have played pivotal roles in formalizing the agreement, with Uganda set to finalize the deal for the Malaba-Kampala stretch soon, while Kenya has already signed commercial contracts for its SGR sections.
A joint statement from the two ministers read, “The commercial contracts for Naivasha-Kisumu and Kisumu-Malaba SGR section in Kenya have been signed while the commercial contract for Malaba-Kampala SGR section in Uganda will be signed soon and the two governments are in the process of mobilizing the financing for construction.’’
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With these recent developments, Kenya and Uganda demonstrate their commitment to advancing infrastructure development, boosting trade, and fostering economic growth in the region. As the projects progress, stakeholders are hopeful that the railway connectivity will bring significant benefits to both nations and pave the way for stronger bilateral ties.
