KAMPALA — Uganda has appointed Citibank to mobilise financing for its planned €2.7 billion Standard Gauge Railway (SGR) linking Malaba on the Kenya border to Kampala, in a renewed push to advance the long-delayed infrastructure project.
The government said the 272-kilometre railway line is expected to improve regional trade and transport efficiency by connecting Uganda to Kenya’s SGR network that runs from Mombasa to Naivasha.
The appointment follows high-level engagements with Citibank Managing Director Richard Hodder on the sidelines of the IMF and World Bank Spring Meetings in Washington.
Shift in financing strategy
The move signals a shift in Uganda’s approach to financing the project, with authorities now exploring diversified funding options beyond traditional bilateral arrangements.
Officials said discussions are ongoing with the World Bank, which is evaluating possible financing structures for the railway.
Regional integration push
The development comes amid renewed commitments by Uganda, Kenya and Rwanda to prioritise the SGR as a key regional infrastructure project.
The railway is expected to form part of a broader corridor extending from the Kenyan port of Mombasa through Malaba to Kampala, and eventually onward to Rwanda and the Democratic Republic of Congo.
Economic impact
Once completed, the SGR is projected to lower the cost of transporting goods, reduce transit time, and enhance Uganda’s competitiveness in regional and international trade.
The project has long been viewed as critical to unlocking economic growth by easing movement of cargo from the coast to inland markets.
With Citibank now tasked to structure and mobilise financing, attention shifts to securing funding commitments and finalising implementation timelines for the railway.
The SGR remains one of Uganda’s most ambitious infrastructure projects, seen as central to its long-term development and regional integration strategy.
