A new era of East African integration begins as Uganda and Kenya prepare to break ground on the SGR link to Malaba and Kampala. Once completed, the modern rail network is projected to reduce freight costs by 35% and cut travel time between the two capitals to just four hours.
A new era of East African integration begins as Uganda and Kenya prepare to break ground on the SGR link to Malaba and Kampala. Once completed, the modern rail network is projected to reduce freight costs by 35% and cut travel time between the two capitals to just four hours.

Overview:

Uganda is set to begin construction on the 2.7 billion euro Standard Gauge Railway in April following a major funding release. The project aims to slash freight costs by 40 percent and reduce cargo transit times between Mombasa and Kampala to less than 24 hours.

KAMPALA, Uganda — The Finance Ministry has released new funding for the third quarter of the 2025/26 fiscal year to accelerate construction of the Standard Gauge Railway.

The 272-kilometer rail line will connect Malaba to Kampala as part of the Northern Corridor network linking Kenya, Uganda, Rwanda and South Sudan.

Ramathan Ggoobi, the ministry’s permanent secretary and secretary to the Treasury, said the Ministry of Works and Transport received an allocation of 1.34 trillion shillings for the quarter. Of that total, 111.21 billion shillings comes from the government, while 1.23 trillion shillings is from external financing.

The funds will support several key transport entities, including Uganda Airlines, Uganda Railways and the Standard Gauge Railway.

Construction is scheduled to begin in April. The total project, estimated to cost 2.7 billion euros, will be funded in phases over four years.

Turkish firm Yapi Merkezi has secured the contract for the work. Ggoobi said initial funds have already been released for preparatory activities, including land acquisition and compensation in Mukono, Wakiso and Kampala.

The new railway is expected to transform regional logistics by reducing the transit time for cargo between Mombasa and Kampala from five days to less than 24 hours. Freight costs are projected to drop by 40%.

Currently, more than 93% of Ugandas cargo is moved by road, while rail accounts for less than 7%.

Ggoobi said Uganda is aligning its technical standards with Kenyas rail system to ensure seamless regional integration.