Business
Four member states of the East African Community partner in Kenya-Uganda rail project
Last week marked a significant development as four East African Community member states joined Kenya and Uganda in their collaborative effort to advance a modern railway along the Northern Corridor. However, the progress of the joint standard gauge railway (SGR) remains hampered by financial constraints, particularly following its termination in Naivasha, situated in Kenya’s Central Rift region.
In a promising turn, Rwanda, Burundi, the Democratic Republic of Congo, and South Sudan joined the SGR Cluster Joint Ministerial Committee, demonstrating their commitment to engaging development partners in securing funding for the railway. The primary aim is to facilitate smoother movement of goods along the Northern Corridor.
Acknowledging the persistent fundraising challenges encountered over the past 5 years, infrastructure ministers convened in Mombasa for discussions. In July 2023, Kenya and Uganda revived the faltering project to construct the SGR railway linking their territories. Despite efforts, they struggled to convince financiers of the project’s viability.
Both governments have since agreed to intensify the search for funding, exploring avenues such as loans or public-private partnerships to extend the railway from Naivasha to Kampala, with further extensions envisioned to Rwanda and South Sudan.
