Other BriefingsKenya Partners with UAE to Extend Standard Gauge Railway, Boost Regional Connectivity
Kenya plans to boost regional trade and mobility by partnering with the UAE to extend its Standard Gauge Railway to Uganda and South Sudan.
Kenya is set to unlock significant regional trade and mobility opportunities through a strategic partnership with the United Arab Emirates (UAE) aimed at extending its Standard Gauge Railway (SGR) to Uganda and South Sudan. The collaboration marks a move to enhance East Africa’s transportation infrastructure, fostering stronger economic ties and boosting regional integration.
President William Ruto, during his recent visit to Abu Dhabi, announced the exploration of this partnership, emphasizing the transformative impact of improved connectivity on trade, logistics, and competitiveness in the region. The proposed SGR extension promises to streamline transit between Kenya, Uganda, and South Sudan, significantly reducing travel time and enhancing cross-border trade efficiency.
A feasibility study for the railway extension has been agreed upon as part of the partnership between Kenya and the UAE. This study will pave the way for improved regional connectivity and economic integration, benefiting not only Kenya but also Uganda and South Sudan. The initiative builds on Uganda’s October agreement with Yapi Merkezi Holdings AS to finance its section of the SGR, which will connect Kampala to the Kenyan border.
The extension of the SGR is a crucial step in overcoming transport bottlenecks that have previously hindered the smooth flow of goods across the region. Historically, Uganda has faced significant delays due to reliance on trucking from Kenya’s ports after China’s decision to halt financing for Uganda’s portion of the SGR. With the UAE’s involvement, Kenya aims to strengthen its leadership in regional infrastructure development, contributing to sustainable growth and economic expansion in East Africa.
The UAE’s interest in Kenya’s SGR extension reflects the growing trend of Gulf states investing in African infrastructure, a strategy that aims to balance global power dynamics while enhancing economic ties across the continent. Thani Al Zeyoudi, the UAE’s Minister of Trade, highlighted the importance of the initiative, noting that Kenya is poised to become a critical gateway for East Africa’s trade.
In addition to the SGR project, Kenya is also negotiating a US$1.5 billion commercial loan from the UAE to support its budget and currency reserves, further cementing the strong economic partnership between the two nations. Trade between Kenya and the UAE has soared in recent years, with the UAE becoming one of Kenya’s top trading partners, particularly in sectors such as agriculture, petroleum, and machinery.
As this partnership develops, the extended SGR is expected to unlock new opportunities for industries reliant on efficient transport networks, from agriculture to manufacturing. The improved connectivity will also open doors to foreign direct investment, helping to accelerate economic growth and integration across the East African region.
Kenya’s initiative to partner with the UAE in expanding the SGR is a key milestone in the country’s efforts to enhance its role as a regional leader in infrastructure development. With continued support from the UAE, this project could serve as a model for other African nations seeking to foster deeper economic integration and create shared growth opportunities across the continent.
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