President Museveni Flags Off $3B Uganda-Kenya SGR Project

Initially, Uganda considered a rail connection to Tanzania, but Museveni shifted focus back to Kenya, citing delays in Tanzania’s project implementation. The decision is a major boost for Kenya’s SGR strategy, which already connects Mombasa to Naivasha and plans extensions to Kisumu and Malaba beginning January 2025 at a cost of Ksh 648 billion

President Yoweri Museveni has officially launched the construction of the 275-kilometer Ugandan section of the Standard Gauge Railway (SGR), marking a significant step toward linking Uganda to Kenya’s Port of Mombasa. This development underscores a key milestone in East Africa’s infrastructure transformation and regional trade integration.

The SGR project, awarded to Turkish contractor Yapi Merkezi for $3 billion (Ksh 388.7 billion), is set to revolutionize transportation in the region. Once completed, the railway will have the capacity to transport up to 1,000 tonnes of cargo per trip, significantly reducing logistical challenges, improving accessibility, and bolstering trade ties with landlocked countries like Rwanda, Burundi, and the Democratic Republic of Congo.

Initially, Uganda considered a rail connection to Tanzania, but Museveni shifted focus back to Kenya, citing delays in Tanzania’s project implementation. The decision is a major boost for Kenya’s SGR strategy, which already connects Mombasa to Naivasha and plans extensions to Kisumu and Malaba beginning January 2025 at a cost of Ksh 648 billion.

During the launch, Museveni emphasized the transformative impact of infrastructure on Africa’s trade potential: “Poor infrastructure lowers trade volumes by 40%, keeping Africa’s share in global trade below 5% and intra-African trade at under 15%, compared to 40–60% in other continents,” he said.
Museveni highlighted the SGR’s role in improving efficiency. Travel between Mombasa and Kampala is expected to take under 10 hours, a sharp improvement from the current 14-hour journey on the outdated meter-gauge railway.

By linking Uganda to Kenya and the broader region, the SGR aims to enhance intra-African trade, allowing countries to rely less on distant export markets. Museveni stressed the importance of regional integration in unlocking Africa’s economic potential, making the SGR a critical investment in East Africa’s future.

This project signals a renewed commitment to leveraging modern infrastructure for economic growth, creating a faster, cost-effective, and sustainable trade network that could reshape the region’s financial landscape.