Uganda and Kenya are going to jointly mobilize at least $6 billion from several lenders to restart construction of the SGR project, which recently stalled following the withdrawal of initial financiers, local media has reported.
Transport ministers from the two East African countries, who met in Mombasa last week, said in a joint communique that once funding for the project is secured, implementation of the final phase will be fast-tracked.
The ministers announced their countries' intention to begin construction of the line by December this year in order to improve freight flows and make the Northern Corridor more competitive.
"We signed a communique with my Kenya counterpart Cabinet Secretary Kipchumba Murkomen, affirming our commitment to construct the SGR in a coordinated manner; Naivasha-Kisumu-Malaba by Kenya and simultaneously Uganda constructing Malaba-Kampala and beyond," said Katumba Wamala, Uganda's Transport Cabinet Secretary.
The transport ministers indicated that Kenya has already finished and operationalized the Mombasa-Nairobi-Naivasha SGR section, noting that the commercial contracts for the remaining Naivasha-Kisumu and Kisumu-Malaba SGR sections have been signed.
As for Uganda, the commercial contract for the Malaba-Kampala section of the SGR is expected to be signed soon, and the two countries are seeking funds for its construction, the ministers added.
"The two countries are at an advanced stage of securing financing for the Naivasha-Malaba-Kampala SGR line [...]. We are now going for financiers either from Europe or United Arab Emirates, or whoever comes with a good deal for our people in East Africa," Murkomen said.
It is expected that the final phase of the railway will also be accompanied by the construction of other necessary facilities, including dry ports and industrial parks, in order to attract investments and boost economic activities along the transport corridor.
The project was initiated in 2014 when East African nations signed and ratified the Standard Gauge Railway Protocol for the development and operation of the railway connecting the Port of Mombasa to Kampala, Kigali and Juba.
Passenger rail services between Mombasa and Nairobi commenced in 2017, and freight rail services started in 2018, while the Nairobi–Naivasha section of the Kenyan SGR officially opened in 2019.
Uganda had said it would start the project in 2015. In January 2023, the government terminated the contract with China Harbour Engineering Company (CHEC) to build the Kampala-Malaba section of the Ugandan SGR, citing "failure to execute" for eight consecutive years.
In May 2023, the government replaced the Chinese company with Turkish Yapı Merkezi Group as a new contractor. Yapı Merkezi will construct the SGR for Uganda from Malaba to Kampala. According to the transport ministers, Uganda will then ensure that the railway is extended to the border with Rwanda, South Sudan, and the DRC.