Developments
The construction was expected to be financed by the government of Uganda, using borrowed money from the Exim Bank of China. However, the lender has been unwilling to approve the loan until Kenya finalizes the funding arrangement for the Naivasha–Kisumu–Malaba section of its SGR.[15]
In January 2023, the Ugandan government terminated the contract that it had signed with China Harbour Engineering Company (CHEC) to build the Kampala–Malaba section of the Ugandan SGR, on account of "failure to execute" for eight consecutive years.[16]
In May 2023, the government identified Yapı Merkezi Group from Turkey as the new engineering, procurement and construction (EPC) contractor. Funding is expected to be sourced from European banks. Works are expected to commence in 2024 starting with the 273 km Kampala–Malaba section.[17] The funding bank was later identified as Standard Chartered Plc of the United Kingdom.[18]
In July 2023, the Ugandan and Kenyan cabinet ministers of transportation met in Mombasa. The communique issued at the end of the two-day consultations announced that going forward, the two countries will jointly explore funding sourcing for the Naivasha–Kisumu–Malaba portion of the Kenya Standard Gauge Railway.[19] Together, the two countries are seeking at least $6 billion in new funding for their SGR projects from financiers in Europe and the Middle East.[17]
In February 2024, both countries reaffirmed their commitments to build the Naivasha-Kisumu-Malaba section in Kenya and the Malaba-Kampala section in Uganda, starting in 2024. The Ugandan government has contracted the Yapı Merkezi Group from Turkey to build the 273 km section between Malaba and Kampala at a contract price of US$2.9 billion. Work was expected to start in August 2024.[20] As of August 2024, the Uganda government was working on finalizing the engineering, procurement and construction (EPC) documentation and obtaining approvals from relevant government bureaucrats. The construction distance from Malaba to Kampala is now reported as 332 km. Construction is expected to begin in H2 2024.[21]
On 14 October 2024, the government of Uganda signed the EPC documents with Yapı Merkezi to build the Malaba-Kampala section of the Uganda Standard Gauge Railway at a contract price of €2.7 billion (approx. USh10.8 trillion). Construction is expected to take four years and conclude in H2 2028.[22]
