Kenya Secures Chinese Funding for SGR Extension to Uganda Border

Summary:

• Kenya has secured funding from China’s Exim Bank to extend the standard gauge railway from Naivasha to the Uganda border. The African Development Bank and Kenya’s Railway Development Fund will also support the project, which aims to improve regional connectivity. Presidents Ruto and Museveni have endorsed the initiative, and further financing discussions are ongoing.

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Kenya has secured a funding commitment from China’s Exim Bank for extending the standard gauge railway (SGR) from Naivasha to the Uganda border, announced Kipchumba Murkomen, Kenya’s Cabinet Secretary of Roads and Transport. The African Development Bank and Kenya’s Railway Development Fund will also support the project.

During a meeting at State House, Nairobi, President William Ruto and Ugandan President Yoweri Museveni endorsed the cross-border railway extension, which aims to connect to the Democratic Republic of Congo (DRC). The railway is expected to enhance regional connectivity, benefiting Uganda, South Sudan, Rwanda, and the DRC.

Murkomen stated that the project would be financed through a government-to-government arrangement with China and syndicated loans from commercial banks. The financing discussions are ongoing, with Kenya, Uganda, and other East African Community (EAC) countries committed to mobilizing resources.

The remaining SGR sections from Naivasha to Kisumu and Kisumu to Malaba are estimated to cost around $5.3 billion. Kenya plans to involve the private sector to manage costs. Construction on these sections is expected to resume later this year.

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