China to fund railway from Naivasha to Ugandan border

Kenya has received a financial commitment from China's Exim Bank to fund the construction of the Standard Gauge Railway (SGR) from Naivasha to the Uganda border.

The African Development Bank and Kenya's Railway Development Fund will offer financial backing for the project, according to Roads and Transport Cabinet Secretary Kipchumba Murkomen.

Kenya and Uganda are actively seeking additional investors for this cross-border initiative.

Murkome made the announcement during a meeting hosted by President William Ruto with Ugandan President Yoweri Museveni at the State House in Nairobi last Thursday.

Both leaders expressed strong support for the railway project, which aims to extend to the Democratic Republic of Congo (DRC).

The Mombasa-Nairobi segment of the SGR, which had a total cost of around $3.6 billion, was mainly financed by the Exim Bank, which contributed 90 per cent of the cost while the Kenyan government provided the remaining 10 per cent.

This railway line is intended to enhance regional connectivity, linking Kenya with Uganda, South Sudan, Rwanda, and the DRC.

There is pressure to extend the line to the resource-rich Great Lakes region, particularly the DRC, as Tanzania progresses with its electrified railway along the Central Corridor.

The confirmation of China's renewed support for the project came a week after Rwanda, Burundi, the DRC, and South Sudan joined the SGR Cluster Joint Ministerial Committee.

These countries have agreed to seek funding from development partners for the railway extension. Uganda plans to begin constructing the Malaba-Kampala segment in September.

President Museveni expressed his satisfaction with the project's progress. He noted the historical context of the collaboration between Uganda, Kenya, Tanzania, and the DRC.

"My only resolution is to put it in historical perspective as to why it is happening now and not long ago. Uganda is part of Kenya, Tanzania, and the DRC," Museveni said.

The railway project is seen as a critical infrastructure development that will boost economic activities and improve the transportation of goods across the region. It follows a series of diplomatic engagements aimed at bolstering regional infrastructure.

The SGR project is part of a larger strategy to improve trade and transportation networks in East Africa. The involvement of multiple countries and international partners highlights the project's significance for regional economic integration.

The railway project is expected to play a significant role in the economic transformation of the East African region. It will facilitate faster movement of goods and people, reduce transportation costs, and enhance trade competitiveness.

Freight trains will run at speeds of up to 80 kilometres per hour, while passenger trains will operate at 120 kilometres per hour.

This agreement marks a departure from earlier efforts to obtain European funding for the project.