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Home » Blog » SGR: Uganda cancels contract with Turkish firm
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SGR: Uganda cancels contract with Turkish firm

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Last updated: June 18, 2026 11:06 am
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KAMPALA, Uganda — Uganda’s long-awaited Standard Gauge Railway (SGR) project has been thrust back into the spotlight after comments by Chief of Defence Forces Gen. Muhoozi Kainerugaba calling for public protests against a Turkish company linked to the railway sparked debate about the future of one of the country’s most strategic infrastructure investments.

The remarks, made through social media, come at a time when optimism had begun to emerge around the project following indications of continued interest from development partners in supporting regional transport infrastructure.

In his posts, Gen. Muhoozi accused a Turkish contractor associated with the railway project of wrongdoing and urged Ugandans to protest against the company.

“We have cancelled the contract with the Turkish company to build the SGR. We will get another one that is more worthy of our country!”

The comments quickly generated reactions from political commentators, economists and infrastructure analysts, many of whom questioned the potential impact on investor confidence and Uganda’s relations with international contractors.

The Standard Gauge Railway is one of Uganda’s flagship infrastructure projects, envisioned as a modern rail network connecting the country to regional trade corridors through Kenya and eventually linking to broader East African transport systems.

Supporters of the project argue that the railway is critical for reducing the high cost of transporting goods, easing pressure on roads, improving regional competitiveness and supporting industrialisation.

However, despite years of planning and multiple government announcements, progress on the railway has been slowed by financing challenges, procurement disputes and coordination issues among East African partner states.

The latest controversy has added uncertainty to a project already facing significant hurdles.

Economic analysts warn that public disputes involving major infrastructure contractors could complicate efforts to attract investment at a time when governments across Africa are competing for limited infrastructure financing.

“Large-scale projects depend heavily on investor confidence and predictability. Public disagreements involving key stakeholders can create uncertainty, particularly where international investors are concerned,” said one Kampala-based infrastructure analyst.

Others argue that concerns raised about contractors should be addressed through established legal, regulatory and contractual mechanisms to avoid undermining confidence in the broader investment environment.

The government had not issued an official statement clarifying its position on Gen. Muhoozi’s comments by press time. Likewise, the Turkish company at the centre of the controversy had not publicly responded to the allegations.

The debate comes as Uganda continues to prioritize infrastructure development as a pillar of its economic transformation agenda, with major investments planned in transport, energy and oil-related projects.

For many observers, the future of the Standard Gauge Railway remains a critical test of Uganda’s ability to deliver large-scale strategic infrastructure that can support trade, lower logistics costs and strengthen regional integration.

As discussions intensify, stakeholders are calling for clarity from government authorities on the status of the project and the implications of the latest developments for Uganda’s infrastructure ambitions.

With billions of dollars in potential economic benefits at stake, the railway remains one of the country’s most closely watched development projects, and any controversy surrounding its implementation is likely to attract significant public and investor attention.

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