Uganda’s SGR edges forward but hurdles remain

Progress on land acquisition has also advanced, with 150 km – about 55% of the route – already secured

Kampala, Uganda | THE INDEPENDENT | Uganda has released $75 million to Turkish contractor Yapı Merkezi to begin preliminary work on its long-delayed Standard Gauge Railway (SGR), a project the government says will cut freight costs and strengthen regional trade links once complete.

The 272-kilometre Malaba–Kampala line is estimated to cost €2.7 billion ($2.9 billion) and forms part of the East African Community Railway Master Plan and Northern Corridor Integration Projects. Once completed, the line will connect Uganda’s capital to the Kenyan border, traversing 10 districts including Tororo, Jinja and Mukono.

The initial funds are being used for surveys and other preparatory works along the route. Officials said construction will give Ugandan businesses a significant share of the contracts, with at least 40% of the project value earmarked for local suppliers in cement, steel, logistics, labour, and other services.

“The project is not just about rails and trains; it is about creating opportunities across the economy,” Perez Wamburu, the SGR project coordinator, told reporters in Kampala on August 26.

Progress on land acquisition has also advanced, with 150 km – about 55% of the route – already secured, mainly up to Buikwe district. Compensation to project-affected persons has reached Shs 300 billion ($80 million), nearly half of the Shs 610 billion set aside.

Officials say the SGR will help reduce reliance on the ageing metre-gauge railway and the congested highways linking Mombasa port to Kampala, cutting the time and cost of moving goods across the region.

The project has been in development for nearly a decade but has faced repeated delays due to financing hurdles and land disputes.

Earlier talks with Chinese lenders collapsed, leaving the government to commit its own resources. Authorities have not disclosed how they intend to fund the remaining cost.

Uganda’s push comes as regional rivals move ahead with similar projects. Kenya has already built more than 600 km of standard gauge track between Mombasa and Naivasha, though plans to extend it towards the Ugandan border have stalled.

Tanzania is constructing its own SGR corridor from Dar es Salaam to inland markets, with Turkish and Chinese contractors.