NAROK/KAMPALA — Kenya has officially launched construction of the Naivasha–Kisumu–Malaba Standard Gauge Railway (SGR), with President William Ruto presiding over the groundbreaking in Narok County as contractors move onto site to begin preliminary works.
The launch at Mutonyi on Thursday marks the start of a 369-kilometre extension that will connect Kenya’s modern railway to Malaba on the Uganda border—one of the busiest trade gateways in East Africa.
Officials confirmed contractors are already mobilised and undertaking early-stage works, including site preparation and engineering groundwork ahead of track laying.
Kenya Railways Corporation said the project will be delivered within set timelines and will significantly enhance regional logistics.
“Upon completion, SGR Phases 2B and 2C will extend the modern railway from Naivasha through Kisumu to Malaba… facilitating seamless cross-border linkages, significantly easing cargo transportation, stimulating trade, and strengthening regional connectivity across East Africa,” the corporation said.
Kenya’s Roads and Transport Cabinet Secretary Davis Chirchir described the project as a strategic intervention to unlock the Northern Corridor.
“It is really significant for us to extend this railway… to support the transportation of goods from the port of Mombasa serving Uganda, Rwanda, DRC and other inland countries,” Chirchir said.
The Northern Corridor handles over 30 million tonnes of cargo annually, with the bulk destined for landlocked economies including Uganda.
Uganda alone trades goods worth over $12 billion annually, more than 80% of which transits through the Port of Mombasa via Malaba.
Currently, 85–90% of cargo is transported by road, with truck transit times from Mombasa to Kampala averaging 4–6 days.
Rail transport is expected to cut freight costs by 30–40% and reduce transit times by up to 50%, while easing congestion by removing thousands of heavy trucks from regional highways.
The project will also link the Port of Mombasa to Kisumu Port on Lake Victoria, creating a multimodal logistics chain for the Great Lakes region.
The launch sharply raises the stakes for Uganda, which is simultaneously accelerating efforts to develop its own Standard Gauge Railway and diversify its trade corridors.
Fianancing
Uganda is pushing to secure financing for the €2.7 billion ($2.9 billion) Malaba–Kampala SGR, with Musa Ecweru leading high-level talks with the Islamic Development Bank to fast-track financial closure.
Fresh details indicate that the financing process is already advancing, with the IsDB appraisal mission having held a formal kickoff engagement with Uganda’s Ministry of Works and Transport SGR team in Kampala in February.
Officials say the lender has committed to supporting the project, positioning it as a key development finance partner.
Government has also begun partial domestic financing under the Limited Notice to Proceed (LNTP), committing about €75 million to early works even as external funding is being finalized. This has enabled contractors to move ahead with preparatory activities.
Under the LNTP arrangement, construction camps, sleeper production facilities and batching plants are already being set up in Iganga District, signalling that groundwork for the railway is underway ahead of full-scale construction.
“This railway is transformative for Uganda and the wider region… Time is of the essence; we should close financing early and proceed without delay,” Ecweru said.
Government officials say more than 60% of the right-of-way has already been acquired, reinforcing Uganda’s readiness to transition into the main construction phase once financing is secured.
Dar Route
At the same time, Uganda is widening its strategic options beyond the Northern Corridor.
In Dar es Salaam, Uganda and Tanzania recently signed a framework agreement for a cross-border SGR linking Tanzania’s Isaka to western Uganda.
The agreement, reached during the 5th Session of the Uganda–Tanzania Joint Permanent Commission, will see the railway run along the Isaka–Lusahunga–Murongo/Kikagati–Mpondwe corridor, connecting to Tanzania’s SGR network and the Port of Dar es Salaam.
Uganda’s Ministry of Foreign Affairs said the deal reflects a broader push to deepen regional connectivity, citing ongoing infrastructure projects including the East African Crude Oil Pipeline (EACOP), now about 79% complete, and expanded Lake Victoria transport services.
The Tanzania route also comes against the backdrop of shifting trade dynamics.
Tanzania exported approximately $2.7 billion worth of goods to Uganda in 2025, compared with about $300 million in Ugandan exports, highlighting a widening trade imbalance both countries have pledged to address by removing non-tariff barriers.
Analysts say the dual-track strategy—linking to both Mombasa and Dar es Salaam—positions Uganda to reduce dependency on a single corridor while improving resilience and competitiveness.
Uganda, a landlocked economy, continues to face some of the highest freight costs in East Africa due to its reliance on road transport and external ports.
Authorities say modern rail infrastructure will cut transit times, lower cargo handling costs, and support industrial growth.
If synchronised with both Kenyan and Tanzanian networks, the projects could transform East Africa’s trade architecture—cutting costs, boosting volumes, and strengthening regional integration across the Great Lakes region.
