Kampala, Uganda – Uganda has released $75 million to Turkish contractor Yapı Merkezi to commence preliminary work on the long-awaited Standard Gauge Railway (SGR), a project expected to slash freight costs and bolster regional trade once completed.
The 272-kilometre Malaba–Kampala line, estimated at €2.7 billion ($2.9 billion), forms a key component of the East African Community Railway Master Plan and Northern Corridor Integration Projects. Once operational, it will link Uganda’s capital to the Kenyan border, passing through ten districts including Tororo, Jinja, and Mukono.
The initial funding is earmarked for surveys and preparatory works along the route. Officials have emphasized that Ugandan businesses will benefit directly, with at least 40% of the project value allocated to local suppliers in cement, steel, logistics, labor, and related services. “The project is not just about rails and trains; it is about creating opportunities across the economy,” said Perez Wamburu, SGR project coordinator, during a briefing in Kampala on August 26.
Land acquisition has also made headway, with 150 km – roughly 55% of the route – secured, primarily up to Buikwe district. Compensation to project-affected persons has reached Shs 300 billion ($80 million), nearly half of the Shs 610 billion allocated for this purpose.
Officials say the SGR will reduce reliance on Uganda’s ageing metre-gauge railway and the congested highways linking Kampala to Mombasa port, cutting both transit time and transportation costs for goods across the region.
Despite progress, the project has faced nearly a decade of delays due to financing challenges and land disputes. Earlier talks with Chinese lenders fell through, leaving the government to commit its own resources, while plans for funding the remaining balance remain undisclosed.
Uganda’s railway push comes amid similar regional developments. Kenya has completed over 600 km of standard gauge track between Mombasa and Naivasha, although expansion toward the Ugandan border has stalled. Meanwhile, Tanzania is advancing its SGR corridor from Dar es Salaam to inland markets, with Turkish and Chinese contractors engaged in construction.