The long-awaited Standard Gauge Railway (SGR) project from the Kenya-Uganda border at Malaba to Kampala is set to commence before the end of the year. This initiative aims to enhance regional trade and connectivity.
Mr. Perez Wamburu, the project coordinator, announced that the construction of the Malaba-Kampala eastern route will be undertaken by Yapi Merkezi, a Turkish contractor. The exact financial commitment from Yapi Merkezi is yet to be disclosed, but the project had previously been tied to a $2.2 billion investment from Chinese contractors, which was terminated last year due to non-delivery issues.
“We are nearing the final stages of finalizing the contract with Yapi Merkezi,” Mr. Wamburu stated during a briefing at the Uganda Media Centre. “We are working on the final approval from the Attorney-General and anticipate starting work before the year ends. We have conducted thorough due diligence on Yapi Merkezi and are confident in their capabilities, especially given their track record in Tanzania.”
This development comes nearly nine years after the SGR project was initially launched by the East African Community partner states of Uganda, Kenya, South Sudan, Rwanda, and Tanzania. The SGR aims to reduce the high transport costs caused by delays in goods transit and improve regional trade.
Mr. Wamburu also mentioned that the project will soon be submitted to the Ministry of Finance for further consideration.
Minister of State for ICT and National Guidance, Mr. Godfrey Kabyanga, highlighted that the previous Chinese contractor faced challenges due to unfavorable conditions. “We initially sought financing from China Exim Bank, but their terms were not suitable. We are now moving forward with the Turkish firm, which offers more favorable conditions. The SGR project is progressing, and we expect to begin construction as soon as financing is finalized,” Mr. Kabyanga assured.
The SGR system, extending from Mombasa to Kampala via Nairobi and Kisumu, is designed to create a modern, high-capacity railway network that will shorten transit times, facilitate the movement of goods and people, and boost economic growth by connecting Uganda with its neighboring countries.
Since its inception in 2013, the SGR project has seen significant progress only in Kenya and Tanzania, while other member states are yet to make substantial headway.
