Kenya, Uganda looking for Naivasha-Kisumu-Malaba-Kampala SGR project financiers

Kenya, Uganda looking for Naivasha-Kisumu-Malaba-Kampala SGR project financiers

NAIROBI, Kenya, July 28 – The Kenyan and Ugandan governments are looking for financiers for the Naivasha-Kisumu-Malaba-Kampala Standard Gauge Railway (SGR) project that has stalled due to a lack of funds.

The two states agree on the need to begin work in tandem for the maximum benefit of the project in the region.

“The Government of Kenya and Government of Uganda are pursuing financing of Naivasha-Kisumu-Malaba and Malaba-Kampala SGR and acknowledge the importance of synchronization of the construction of the SGR sections to achieve viability; and,” a communique signed by Kenya’s Roads and Transport Cabinet Secretary Kipchumba Murkomen and his Uganda counterpart Edward Katumba-Wamala read.

In 2016, the two governments signed a Bilateral Agreement to connect Mombasa and Kampala through the SGR.

Kenya has already completed the construction of the Mombasa-Nairobi-Naivasha part for both passengers and freight.

However, the Naivasha-Kisumu-Malaba route has yet to start.

While contracts for the construction of Naivasha-Malaba have already been signed on the Kenyan side, the Malaba-Kampala SGR is set to be signed very soon.

“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;,” the statement said.

“Uganda would ensure that SGR is extended to the border with Rwanda, South Sudan and DR Congo as soon as possible to further improve viability and attractiveness for financing of the SGR along the Northern Corridor,” it added.

“Uganda will apply for financing for the SGR Western Route (Kampala -Kasese-Mpondwe with a branch line from Bihanga-Mirama Hills) immediately after securing financing for the SGR Eastern route from Malaba-Kampala;.”