Kenya has announced ongoing discussions with the United Arab Emirates (UAE) to expand its Standard Gauge Railway (SGR) network to Uganda and South Sudan, aiming to bolster regional trade and integration.
President William Ruto shared the update on X, stating:
“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 initiative, Kenya and the UAE have agreed to conduct a feasibility study on the railway extension.
This development underscores the project’s potential to enhance connectivity and foster economic growth across East Africa.
In October, Uganda signed an agreement with Yapi Merkezi Holdings AS to finance its segment of the SGR, which will connect Kampala to the Kenyan border. The agreement marks a critical step in Uganda’s efforts to modernize its transportation infrastructure.
However, a previously planned railway line linking Uganda to Kenya’s port failed to reach the border after China withdrew funding for the remaining sections of the project, leaving Uganda reliant on trucking for its transportation needs.
President Ruto is currently attending a two-day summit in Abu Dhabi, where he held discussions with UAE Investment Minister Mohamed Hassan Alsuwaidi.
These talks focused on strengthening economic partnerships and fostering investment opportunities.
Key outcomes from the discussions include:
- Investment in Agriculture: The UAE committed to supporting Kenya’s Galana-Kulalu irrigation project and other agricultural initiatives to enhance food security.
- Financial Support: Kenya is seeking a $1.5 billion loan from Abu Dhabi to close its budget deficit. This funding would help boost Kenya’s foreign currency reserves and stabilize the Kenyan shilling.
The UAE’s engagement aligns with Gulf states’ broader strategy to invest in Africa, leveraging their oil wealth to expand influence while balancing the dominance of global powers like the US, China, and Russia.
By partnering with the UAE, Kenya aims to secure critical investments that can drive infrastructure development and strengthen its position as a regional economic hub.
