July 3, 2024

Kenya strikes deal to extend SGR to Uganda

3 min read
Kenya strikes deal to extend SGR to Uganda

Kenya and Uganda signed agreements that will see to it the Standard Gauge Railway (SGR) extended to Kampala in Uganda

Kenya and Uganda signed agreements that will see to it the Standard Gauge Railway (SGR) extended to Kampala.

Transport Cabinet Secretary Kipchumba Murkomen on Friday, July 28, announced that Kenya and Uganda have signed an agreement to extend the Standard Gauge Railway (SGR) to the neighboring country. 

The CS said the SGR, which currently connects Mombasa to Nairobi and onwards to Naivasha, will be extended to Malaba first through the joint agreement after which the government of Uganda will stretch it to Kampala.

Uganda Minister of Works and Transport Edward Katumba Wamala and his Kenya Roads and Transport counterpart Kipchumba Murkomen signed a bilateral agreement reaffirming their commitment to the development of the project.

According to the two governments, the development of SGR would result in efficiency and reduction of transportation costs for the benefit if the people in the region.

The railway will facilitate the transportation of fuel, currently carried out by trucks along the Mombasa-Nairobi-Kisumu Highway.

“The signing of this communique, saw the two countries commit to undertaking the SGR extension project as a regional project under the Northern Corridor Integration Projects Initiative.

“Uganda has committed to ensuring that SGR is extended to the border with Rwanda, South Sudan, and DRC Congo as soon as possible to further improve the viability and attractiveness of the financing of the SGR along the Northern Corridor,” read the statement in part.

Both Uganda and Kenya will seek financing for the multi-billion-dollar project. 

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Uganda has already secured funding of Ksh327 billion in May 2023 from a global bank, with a Turkish company winning the tender.

On the other hand, the Kenyan government has not yet disclosed the exact cost of the extension within its territory. 

However, back in 2019, former President Uhuru Kenyatta, who initiated the SGR project, attempted to secure a Ksh380 billion loan from China for the extension, but unfortunately, he was unsuccessful in obtaining the funding during his 2019 trip to Beijing.

Nonetheless, in December 2022, China, through its ambassador to Kenya, Zhou Pingjian, offered to support the extension of the SGR during the inspection of the Inland Container Depot (ICD) in Mai Mahiu Naivasha.

“Kenya is our great friend and we are ready to partner with it in the other transport infrastructure projects including the SGR and roads,” the diplomat stated.

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