President William Ruto appears to have dropped China for UAE to finance the extension of the stalled standard gauge railway to Uganda.
This emerged on Tuesday during his meeting with UAE Investment minister Mohamed Hassan Alsuwaidi in Abu Dhabi.
The President said his government is exploring a partnership agreement with the United Arab Emirates to extend the railway from Naivasha to connect Kenya, Uganda and South Sudan.
“As part of the plan, we have agreed to conduct a feasibility study over the extension of the SGR due to its capacity to foster regional integration and promote trade…We also agreed on UAE’s investment in the Galana-Kulalu project and other agricultural initiatives aimed at strengthening our food security agenda,” the President said on X.
Ruto’s announcement suggests his attempts at convincing the Chinese to fund the completion of the project have not borne fruit and is now seeking alternatives.
In September last year during his second visit to China, President Ruto indicated they had discussed the project with his host, President Xi Jinping.
“In Kenya, we have established a robust institutional framework supported by incentives and a return on investment…Discussed various projects such as the Rironi-Mau Summit-Malaba dual carriageway, Galana-Kulalu Irrigation Project, Bomas International Conference Centre and the expansion of the SGR into the region,” President Ruto said on X.
Announcing his trip to Beijing, State House had said the President’s visit was expected to yield positive results in conclusion of discussions on the extension and completion of the SGR towards Malaba.
He was also to discuss the dualing of Nairobi Northern bypass, the establishment of a pharmaceutical park and Preferential Trade Agreement and Investment Protection Agreement.
PAST ATTEMPTS
This was his second attempt at unlocking the financing after his first push in October 2023, when he attended the Belt and Road Initiative meeting in Beijing, to get $1 billion financing to unlock stalled projects failed to sail through.
Phase 2B from Naivasha to Kisumu is expected to cost Sh380 billion, while phase 2C, from Kisumu to Malaba, will take another Sh122.9 billion.
In October 2023 the President pitched for a joint bid with Uganda, the DRC and Congo Brazzaville.
He told the Kenya-China investors roundtable in Beijing at the time that talks had begun for the joint initiative in bid to improve flow of cargo and make the northern corridor competitive after the SGR stalled in Naivasha.
“Why we are discussing with China on extending the Standard Gauge Railway beyond Naivasha into Uganda, DRC, all the way to Congo Brazzaville is because we want to connect the eastern coast of Africa to the western coast of Africa using the SGR,” President Ruto said.
“We have had conversations with the Presidents of Uganda, DRC and Congo Brazzaville and we have all agreed on the need to extend this piece of infrastructure as a means of facilitating trade across our continent and making sure companies like yourselves, who set up in Kenya, not only have access to the Kenyan market but also the Eastern African and continental market. We have made the decision that is the way to go,” Ruto told the investors.
There has not been much progress on the project since then.
In the plan, the railway will extend to Kampala, Kasese to Mpondwe near the border with DR Congo. It will also head to Rwanda and South Sudan to make the northern corridor competitive.
