Could Ugandan rail deal convince China to help get Kenyan project back on track?

A recently announced rail project in Uganda could have wide-ranging implications for neighbouring Kenya, observers say

Reading Time:4 minutes

After Uganda announced a new construction deal for a section of the SGR in East Africa, it could help spur China into action to finance a stalled section of Kenya’s railway which would meet up with the Ugandan line. Photo: AFP

Published: 12:00pm, 23 Oct 2024Updated: 12:58pm, 23 Oct 2024

A Ugandan construction deal could provide the impetus needed to see China hand over extra financing to a stalled rail project in Kenya, according to observers.

On Monday last week, Uganda awarded Turkish construction firm Yapi Merkezi the contract to build a 272km (169-mile) section of the Standard Gauge Railway (SGR) from capital Kampala to Malaba at the Kenyan border, at a cost of US$3 billion.

It comes just over a year since funding delays saw Kampala terminate a 2015 contract it had with China Harbour and Engineering Company (CHEC) to build the railway.

Yapi Merkezi termed the deal as “one of the largest projects signed by Turkish contractors abroad” and said it holds strategic significance not only for Uganda but also for East Africa.

The contract involves the design, construction and supply of rail vehicles for a standard gauge railway that meets European and American standards. It will be fully electrified, the firm said.

Uganda is optimistic the railway will lower the cost of doing business, reduce the strain on roads and support the country’s ambition to export 12 million bags of coffee each year.