Kenya has secured funding for the standard gauge railway line from Naivasha to the Uganda border from China’s Exim Bank. Kipchumba Murkomen, Kenya’s Cabinet Secretary of Roads and Transport, disclosed that the African Development Bank and Kenya’s Railway Development Fund would support the Chinese funding for the project.
President William Ruto and Ugandan President Yoweri Museveni expressed their support for the cross-border project during a meeting at State House, Nairobi. The railway line aims to improve regional connectivity with links to Uganda, South Sudan, Rwanda, and the Democratic Republic of Congo. Kenya and Uganda face pressure to extend the railway line to the Great Lakes region, particularly the resource-rich DRC, as Tanzania progresses with its electrified line on the Central Corridor. Tanzania’s project, valued at $7.6 billion, spans over 1,600km from Dar es Salaam to Mwanza and Kigoma.
The project, constructed in five phases by contractors from Turkey and China, is at various completion stages, with an estimated completion date set for 2025.
Dodoma recently welcomed the first set of electric locomotives intended for use on the SGR railway, with operations slated to commence in July. The locomotives, procured from Hyundai Rotem in South Korea, have a capacity of up to 589 passengers and can travel at speeds of around 160km per hour. The news about Beijing’s renewed commitment to reviving the project surfaced shortly after Rwanda, Burundi, DRC, and South Sudan joined the SGR Cluster Joint Ministerial Committee, pledging to collaborate with development partners to secure funding for the railway initiative. According to Mr. Murkomen, the proposed project’s financing will involve a government-to-government agreement between Kenya and China, facilitated by the Exim Bank of China and commercial bank loans.
The Kenyan government will contribute to the project through the Railway Development Levy Fund. During a recent joint statement by President Ruto, Uganda and Kenya emphasized the significance of extending the SGR not only from Naivasha to Malaba but further to Kampala and DRC, creating an efficient transportation route for goods. Uganda is expected to commence construction on the Malaba-Kampala segment in September, with President Museveni expressing satisfaction with the progress made.
The partners are collectively seeking approximately $6 billion from various lenders to jumpstart the project, which had faced setbacks following China’s withdrawal as the primary financier. The recent involvement of Beijing has reignited the partners’ quest for commercial lenders. Minister Murkomen mentioned that financing discussions are ongoing after all East African Community transport ministers committed to the project. Furthermore, Kenya, DR Congo, Rwanda, South Sudan, and Uganda signed a joint agreement this month to develop a cross-border railway line, aligning with the EAC Treaty on transport infrastructure development.
The SGR project is envisioned to include commercial and logistics hubs as well as industrial parks along the corridor to support socio-economic activities. Kenya has already completed the construction of the SGR from Mombasa to Nairobi and from Nairobi to Naivasha, both of which are operational. Plans are underway to connect the remaining sections from Naivasha to Kisumu and from Kisumu to Malaba to Uganda at the Malaba border. The estimated cost for the Naivasha-Kisumu-Malaba line is $5.3 billion. Kenya aims to resume construction on these sections starting in July and September, respectively, with hopes to involve the private sector in funding the project. Uganda’s State Minister for Transport, Fred Byamukama, stressed the importance of sourcing funds jointly and engaging the same contractors for seamless progress.
