Uganda and Kenya have officially broken ground for the extension of the Standard Gauge Railway (SGR) from Naivasha through Kisumu to Malaba at the Ugandan border, in a move aimed at lowering transport costs and improving trade efficiency across the region.
The groundbreaking ceremony was held on Saturday and presided over by President Yoweri Museveni and Kenya’s President William Ruto.
President Museveni described the railway as a transformative investment that will ease the cost of doing business by shifting cargo from road to rail.
“This modern project is a key pillar in the rationalisation of our transport system. By shifting bulk cargo from roads to rail and pipelines, we reduce transport costs, protect infrastructure and improve efficiency,” Museveni said.
“Strategic investments like these are essential for lowering the cost of doing business, supporting industrialisation and advancing the economic transformation of our region and Africa.”
President Ruto emphasized the urgency of improving transport along the Northern Corridor, noting that inefficiencies risk undermining regional competitiveness.
“A slow transport corridor inevitably loses business and weakens our competitiveness as a nation,” Ruto said.
He highlighted the growing demand for efficient logistics, revealing that cargo volumes through the Port of Mombasa reached 7.37 million tonnes in the first half of 2025, with about 70 percent destined for Uganda.
The SGR extension is expected to significantly improve movement of goods between the Kenyan coast and Uganda by cutting freight costs by about 50 percent and reducing transit time by nearly 30 percent.
The project will also ease pressure on road infrastructure by shifting bulk cargo to rail, reducing wear and tear on highways.
Once completed, the railway will reach Kisumu by mid-2027, where it will link to a Lake Victoria steamer route connecting to Jinja and Entebbe. It will also extend to Malaba, linking with the Malaba–Kampala line currently under construction.
The broader vision is to connect the railway to the Democratic Republic of Congo, Rwanda, and South Sudan, positioning it as a key trade corridor for the Great Lakes region.
The project, estimated at Shs14.82 trillion ($3.9 billion), is expected to support key sectors such as agriculture and fisheries, particularly around the Lake Victoria basin.
The launch was attended by First Deputy Prime Minister Rebecca Kadaga and Minister of Works and Transport Gen. Katumba Wamala, among other officials.
