The governments of Kenya and Uganda have partnered to revive the near-dead project to build the Standard Guage Railway (SGR) between them, as it poses renewed efforts to upgrade infrastructure on the Northern Corridor for better trade. 

On Friday, both governments issued the joint declaration and stated that the project is highly dependent on how soon a financial sponsor comes on board. They noted that it is the unavailability of funds that killed the earlier plans and rendered the SGR nowhere. 

With the new partnership on board, ministers in charge of transport claimed that they have renewed sources for funds jointly, which include loans or an agreement for public-private partnerships. They noted that if things go as planned, the contractor should be on site from December to begin construction on the SGR extension from Naivasha to Kampala for now, before extending to Uganda’s border towns with Rwanda and South Sudan. 

Both governments inked an agreement to finalize joint resource mobilization in the next four months to fund the line from Naivasha to Malaba to Kampala and from Kampala to Kasese-Mpondwe with a branch line from Bihanga to Mirama hills. 

The deal signing was by Ugandan Minister of Works and Transport, Katumba Wamala and his Kenyan counterpart, Kipchumba Murkomen and it will see to the increased use of rail to haul Uganda-bound cargo using the SGR and the meter gauge rail from Naivasha to Malaba border in the coming months. 

The joint communique issued at the Mombasa SGR terminal after signing the agreement reads “The commercial contracts for Naivasha-Kisumu and Kisumu-Malaba SGR section in Kenya have been signed while the commercial contract for Malaba-Kampala SGR section in Uganda will be signed soon and the two governments are in the process of mobilizing the financing for construction.

Also, “The two governments acknowledge the importance of synchronization of the construction of the SGR section to achieve viability.”

The Kenyan Minister of Transport, Mr. Murkomen said they have already presented their offers to different financiers from Europe and in the Middle East who have shown interest in investing. He stated that the project was first envisaged eight years ago but failed to happen as Uganda and Kenya were unsuccessful in raising funds from China. 

Minister Wamala said that Uganda is working with a Turkish Company on a feasibility study from Malaba to Kampala and to Kasese and Tororo, as they are in the final stage of getting a sponsor and are weighing which will bring in the best deal. He noted that the two government hope to start this before the end of the year through joint financing. 

“The two governments recognize the importance of addressing challenges that would impact negatively on attracting financing for the sections and which would as well disadvantage Uganda and Kenya in terms of reaching Rwanda, South Sudan, DR Congo, and Burundi,” said the two governments in a communique.

“As we wait for the construction of the SGR, we have agreed on how to support existing infrastructure where we have to use SGR to Naivasha to transport cargo from Mombasa port and forward cargo to Uganda using MGR from Naivasha to Malaba for ease transfer of cargo,” said Min. Wamala.