President William Ruto and Ugandan President Yoweri Museveni on Saturday launched the SGR extension linking Kisumu to Malaba, marking a key step in efforts to improve regional trade connectivity. The two leaders met in Kisumu to commission the next phase of the Standard Gauge Railway project, which aims to connect Kenya to Uganda and the wider East African region.
The SGR extension is expected to enhance cargo movement and reduce transport costs, although concerns remain over the project’s financing and long-term economic viability.
SGR extension targets regional trade growth
The SGR extension is designed to link Kenya’s railway network to Uganda and beyond, forming part of a broader regional integration strategy. Speaking during the launch, President Ruto highlighted the historical role of railways in shaping economic growth across East Africa.
“It’s in moments like these that our nations are shaped,” Ruto said, referencing the colonial-era Kenya-Uganda railway that connected Mombasa to inland regions.
He noted that the new railway will connect agricultural hubs and support trade across countries including Rwanda, Burundi, the Democratic Republic of Congo, and the Central African Republic.
Infrastructure aims to reduce logistics costs
The SGR extension comes as governments in the region seek to address high logistics costs that affect competitiveness. Ruto said cargo movement delays remain a major challenge, with shipments taking up to 100 hours to reach Kampala.
“We cannot build prosperity like this,” he said, adding that improved rail infrastructure would support industrial parks and economic zones in Kisumu and Busia.
According to the government, the railway will ease pressure on road transport while increasing efficiency in cargo handling along the Mombasa–Malaba corridor.
Uganda confirms progress on connecting line
During the SGR extension launch, Ruto said President Museveni confirmed that Uganda has already awarded the Malaba–Kampala section of the railway. Plans are also in place to extend the line further to Kasese.
The development signals renewed momentum for cross-border rail connectivity, which has faced delays in recent years due to financing challenges.
Cost concerns surround SGR extension project
Despite its strategic importance, the SGR extension has drawn scrutiny over its cost. Treasury estimates place the Kisumu–Malaba section at more than Ksh.500 billion.
Kenya currently spends about Ksh.129.3 billion annually servicing Chinese debt, much of it linked to earlier phases of the railway. In contrast, the railway generated approximately Ksh.21.3 billion in revenue last year.
An Auditor General’s report also indicated that over Ksh.33.6 billion has been lost through penalties and interest due to delayed debt repayments.
Government defends SGR extension investment
The government has defended the SGR extension as essential for long-term economic growth and regional integration. Earlier this week, Ruto launched another phase of the railway in Narok County, describing the project as a catalyst for development.
“We have thought through this project and its finance,” he said.
Officials argue that completing the railway will strengthen Kenya’s position as a transport and logistics hub in eastern and central Africa.
Outlook for SGR extension and regional integration
The SGR extension is expected to play a central role in linking landlocked countries such as Uganda, Rwanda, South Sudan, and the Democratic Republic of Congo to the port of Mombasa.
However, analysts say the project’s success will depend on balancing infrastructure expansion with sustainable financing. The next phases of construction and cross-border coordination will be closely watched.
For now, the launch signals renewed commitment by Kenya and Uganda to deepen economic ties through infrastructure, even as financial and operational challenges remain.
