Kenya has revealed ongoing discussions with the United Arab Emirates (UAE) to extend its Standard Gauge Railway (SGR) to Uganda and South Sudan.
President William Ruto shared the announcement in a post 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 this initiative, an agreement has been reached to conduct a feasibility study for the railway extension, emphasizing its potential to enhance regional integration and boost trade across East Africa.
In October, Uganda signed an agreement with Yapi Merkezi Holdings AS to finance its segment of the Standard Gauge Railway (SGR), connecting the capital, Kampala, to the Kenyan border, Bloomberg reported.
Another line that should have linked Uganda to Kenya’s port failed to reach their shared border when China scrapped funding for the rest of the project once it built almost 600 kilometres of the railroad. As a result, Uganda has largely relied on trucking to access the port for its transportation needs.
President William Ruto is attending a two-day summit in Abu Dhabi. During his visit, he held discussions with UAE Investment Minister Mohamed Hassan Alsuwaidi, focusing on enhancing economic partnerships and fostering investment opportunities.
The discussions also included UAE’s commitment to invest in the Galana-Kulalu project and other agricultural initiatives aimed at bolstering Kenya’s food security agenda.
Kenya is also pursuing a $1.5 billion loan from Abu Dhabi to help close its budget-financing gap. The funding from the oil-rich emirate would boost Kenya’s foreign-currency reserves and support the Kenyan shilling.
This move aligns with Gulf states’ broader strategy, including the UAE and Qatar, to channel their petrodollars into Africa, strengthening their influence in the region while balancing the dominance of global powers such as the US, China, and Russia.
