Following China’s withdrawal of funding, Kenya is exploring a partnership with the United Arab Emirates (UAE) to secure financing for the completion of its Standard Gauge Railway (SGR) extension.
The original SGR project, initiated under China’s Belt and Road Initiative, stalled in 2019, ending 468 kilometres at the Malaba border.
President William Ruto announced the pursuit of UAE financing, stating, “We are exploring a partnership agreement with the UAE to extend the SGR… We have agreed to conduct a feasibility study…”
President Ruto was speaking in Abu Dhabi, following talks with UAE Investment Minister Mohamed Hassan Alsuwaidi.
We are exploring a partnership agreement with the United Arab Emirates to extend the Standard Gauge Railway to connect Kenya, Uganda and South Sudan.
As part of the plan, we have agreed to conduct a feasibility study over the extension of the SGR due to its capacity to foster… pic.twitter.com/kXZ4knuyBn
— William Samoei Ruto, PhD (@WilliamsRuto) January 14, 2025
This initiative aligns with a 2024 agreement between Kenya, Uganda, Rwanda, and the Democratic Republic of Congo to expand SGR lines under the Northern Corridor Integration Projects (NCIPs).
The 475-kilometer Naivasha-Malaba extension, set to commence in 2025 at an estimated cost of 648 billion shillings, is crucial for connecting Uganda to the vital Mombasa port.
The Kenyan government is exploring a Public-Private Partnership (PPP) model or seeking loans from development partners, including the UAE, to finance this critical infrastructure project.
Uganda has already begun construction on its section of the railway, while Kenya prioritizes the Naivasha-Malaba route to enhance regional connectivity and facilitate trade.
The SGR extension is expected to significantly reduce transportation costs, improve regional competitiveness, and stimulate economic growth by facilitating easier access to regional and international markets.